Notes to Accounts of Monarch Networth Capital Ltd.

Mar 31, 2025

xiv). Provisions and Contingent liabilities
General

Provisions are recognised when the Company
has a present obligation (legal or constructive)
as a result of a past event, it is probable
that an outflow of resources embodying
economic benefits will be required to settle
the obligation and a reliable estimate can
be made of the amount of the obligation.
When the Company expects some or all of a
provision to be reimbursed, for example, under
an insurance contract, the reimbursement is
recognised as a separate asset, but only when
the reimbursement is virtually certain. The
expense relating to a provision is presented
in the statement of profit and loss net of any
reimbursement.

If the effect of the time value of money is material,
provisions are discounted using a current pre¬
tax rate that reflects, when appropriate, the
risks specific to the liability. When discounting

is used, the increase in the provision due to the
passage of time is recognised as a finance cost.

Contingent liability is disclosed in the case of:

1. A present obligation arising from the past
events, when it is not probable that an
outflow of resources will be required to
settle the obligation;

2. A present obligation arising from the past
events, when no reliable estimate is possible;

3. A possible obligation arising from the past
events, unless the probability of outflow of
resources is remote.

Contingent assets are not recognized in the
Financial Statements.

(v). Earnings per share

Basic earnings per share are calculated by
dividing the net profit for the period attributable
to equity shareholders by the weighted average
number of equity shares outstanding during
the period. Earnings considered in ascertaining
the Company’s earnings per share is the net
profit for the period after deducting preference
dividends and any attributable tax thereto for the
period. The weighted average number of equity
shares outstanding during the period and for all
periods presented is adjusted for events, such
as bonus shares, other than the conversion of
potential equity shares that have changed the
number of equity shares outstanding, without a
corresponding change in resources.

For the purpose of calculating diluted
earnings per share, the profit or loss for the
period attributable to equity shareholders
and the weighted average number of shares
outstanding during the period is adjusted for
the effects of all dilutive potential equity shares.

vi). Events after Reporting Date

Where events occurring after the balance sheet
date provide evidence of conditions that existed
at the end of the reporting period, the impact
of such events is adjusted within the Financial
Statements. Otherwise, events after the balance
sheet date of material size or nature are only
disclosed.

xvii). Use of estimates and judgments

The presentation of the Financial Statements are
in conformity with the Ind AS which requires the
management to make estimates, judgments
and assumptions that affect the reported
amounts of assets and liabilities, revenues and
expenses and disclosure of contingent liabilities.
Such estimates and assumptions are based
on management’s evaluation of relevant facts
and circumstances as on the date of Financial
Statements. The actual outcome may differ
from these estimates.

Estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to the
accounting estimates are recognised in the
period in which the estimates are revised and in
any future periods affected.

The following are significant management
judgments in applying the accounting policies
of the Company that have a significant effect on
the Financial Statements.

Recognition of deferred tax assets

The extent to which deferred tax assets can be
recognised is based on an assessment of the
probability of the Company’s future taxable
income against which the deferred tax assets
can be utilized. In addition, significant judgment
is required in assessing the impact of any legal
or economic limits or uncertainties in various
tax jurisdictions.

Impairment of assets

In assessing impairment, management
estimates the recoverable amounts of each
asset or CGU (in case of non-Financial assets)
based on expected future cash flows and uses
an estimated interest rate to discount them.
Estimation relates to assumptions about future
cash flows and the determination of a suitable
discount rate.

Useful lives of depreciable /amortisable assets
(Property, plant and equipment, intangible
assets and investment property)

Management reviews its estimate of the useful
lives of depreciable / amortisable assets at each
reporting date, based on the expected usage
of the assets. Uncertainties in these estimates

relate to technical and economic obsolescence
that may change the usage of certain assets.

Defined benefit obligation (DBO)

The cost of defined benefit gratuity plan and the
present value of the gratuity obligation along
with leave salary are determined using actuarial
valuations. An actuarial valuation involves
making various assumptions such as standard
rates of inflation, mortality, discount rate,
attrition rates and anticipation of future salary
increases. Due to the complexities involved
in the valuation and its long-term nature, a
defined benefit obligation is highly sensitive to
changes in these assumptions. All assumptions
are reviewed at each reporting date.

Share based payments

Estimating fair value for share based payment
requires determination of the most appropriate
valuation model. The estimate also requires
determination of the most appropriate inputs
to the valuation model including the expected
life of the option, volatility and dividend yield
and making assumptions about them.

Fair value measurements

Management applies valuation techniques
to determine the fair value of Financial
instruments (where active market quotes are
not available) and non-Financial assets. This
involves developing estimates and assumptions
consistent with how market participants would
price the instrument /assets. Management
bases its assumptions on observable data as far
as possible but this may not always be available.
In that case management uses the best relevant
information available. Estimated fair values
may vary from the actual prices that would be
achieved in an arm’s length transaction at the
reporting date.

xviii). Statement of cash flows

Cash flow are reported using the indirect
method, whereby net profit before tax is
adjusted for the effects of transactions of a non¬
cash nature, any deferrals of accruals of past
or future operating cash receipts or payments
and item of income or expenses associated with
investing or financing cash flows. The cash flows
from operating, investing and finance activities

of the Company are segregated.

xix). Fair value measurement

The Company measures Financial instruments,
such as, derivatives at fair value at each balance
sheet date.

Fair value is the price that would be received to
sell an asset or paid to transfer a liability in an
orderly transaction between market participants
at the measurement date. The fair value
measurement is based on the presumption
that the transaction to sell the asset or transfer
the liability takes place either:

1. In the principal market for the asset or
liability, or

2. In the absence of a principal market, in the
most advantageous market for the asset or
liability.

The principal or the most advantageous market
must be accessible by the Company.

The fair value of an asset or a liability is measured
using the assumptions that market participants
would use when pricing the asset or liability,
assuming that market participants act in their
economic best interest.

The Company uses valuation techniques that
are appropriate in the circumstances and for
which sufficient data are available to measure
fair value, maximising the use of relevant
observable inputs and minimising the use of
unobservable inputs.

All assets and liabilities for which fair value
is measured or disclosed in the Financial
Statements are categorised within the fair value
hierarchy, described as follows, based on the
lowest level input that is significant to the fair
value measurement as a whole:

1. Level 1 — Quoted (unadjusted) market
prices in active markets for identical assets
or Liabilities.

2. Level 2 — Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is directly or
indirectly observable.

3. Level 3 — Valuation techniques for which
the lowest level input that is significant to
the fair value measurement is unobservable.

For assets and liabilities that are recognised in
the Financial Statements on a recurring basis,
the Company determines whether transfers
have occurred between levels in the hierarchy
by re-assessing categorisation (based on the
lowest level input that is significant to the fair
value measurement as a whole) at the end of
each reporting period.

External valuers are involved for valuation of
significant assets, such as unquoted Financial
assets. Involvement of external valuers is decided
upon annually by the Valuation Committee
after discussion with and approval by the
management. Selection criteria include market
knowledge, reputation, independence and
whether professional standards are maintained.
Valuers are normally rotated every three years.
The management decides, after discussions with
the Company’s external valuers, which valuation
techniques and inputs to use for each case.

At each reporting date, the management
analyses the movements in the values of
assets and liabilities which are required to
be remeasured or re-assessed as per the
Company’s accounting policies. For this analysis,
the management verifies the major inputs
applied in the latest valuation by agreeing the
information in the valuation.

The management, in conjunction with the
Company’s external valuers, also compares the
change in the fair value of each asset and liability
with relevant external sources to determine
whether the change is reasonable.

For the purpose of fair value disclosures, the
Company has determined classes of assets
and liabilities on the basis of the nature,
characteristics and risks of the asset or liability
and the level of the fair value hierarchy as
explained above.

This note summarizes accounting policy for fair
value. Other fair value related disclosures are
given in the relevant notes.

d Terms / Rights attached to each classes of shares
Terms / Rights attached to Equity shares

The Company has only one class of equity shares with voting rights having a par value of '' 10 per share.
Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends
in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the
shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

The Board of Directors, have recommended a Dividend for the financial year ended on 31/03/2025 @ 10%
(i.e. '' 1/-) per equity share (Previous Year - '' 1/-) to the equity shareholders. The Dividend will be paid after
the approval of shareholders at ensuing Annual General Meeting. The date of book closure/record date
for the entitlement of such dividend and Annual General Meeting shall be decided and informed in due
course of time.

The Description of the nature and purpose of each reserve within equity is as follows:

a) Capital reserve: Capital Reserves are mainly the reserves created during business combination for the
gain on bargain purchase.

b) Securities Premium Reserve: Securities premium reserve is credited when shares are issued at premium.
It is utilised in accordance with the provisions of the Act, to issue bonus shares, to provide for premium on
redemption of shares or debentures, write-off equity related expenses like underwriting costs, etc.

c) Share Based Payment Reserve: This reserve is created by debiting the statement of profit and loss
account with the value of share options granted to the employees by the Company. Once shares are
issued by the Company, the amount in this reserve will be transferred to Share capital, Securities premium
or retained earnings.

d) Retained earnings: Retained earnings represents undistributed profits of the company.

e) Other comprehensive income: Represents remeasurements of defined benefit liability comprises of
actuarial gains and losses.

B. Defined Benefit Plan:

Gratuity payable to employees

The Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes
administered by the LIC of India, a funded defined benefit plan for qualifying employees. The scheme
provides for payment as under:

i) On normal retirement / early retirement / withdrawal / resignation:

As per the provisions of the Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death in service:

As per the provisions of the Payment of Gratuity Act, 1972 without any vesting period.

Under the scheme, the settlement obligation remains with the Company. Company accounts for the
liability for future gratuity benefits based on an actuarial valuation. The net present value of the Company’s
obligation towards the same is actuarially determined based on the projected unit credit method as at
the Balance Sheet date.

Basis & Reasonableness of Valuation Assumptions
Discount Rate

Discount rate for this valuation is based on government bonds having similar term to duration of liabilities.
Due to lack of a deep and secondary bond market in India, government bond yields are used to arrive at
the discount rate.

Salary escalation rate

Estimated future salary increases should take account of inflation, seniority, promotion and other relevant
factors such as supply and demand in the employment market.

Valuation techniques used to determine fair value

Specific valuation techniques used to value financial instruments includes investment in equity investment
valued at quoted closing price on stock exchange / other basis based on materiality.

Transfers between Levels 1 and 2

There were no transfer from Level 1 to Level 2 or vice versa in any of the reporting periods.

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

Credit risk ;

Liquidity risk ; and
Market risk

Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the
Company’s risk management framework. The board of directors has established the Risk Management
Committee, which is responsible for developing and monitoring the Company’s risk management policies.
The committee reports regularly to the board of directors on its activities.

The Company’s risk management policies are established to identify and analyse the risks faced by the
Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk
management policies and systems are reviewed regularly to reflect changes in market conditions and the
Company’s activities. The Company, through its training and management standards and procedures, aims
to maintain a disciplined and constructive control environment in which all employees understand their roles
and obligations.

The audit committee oversees how management monitors compliance with the company’s risk management
policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks
faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit
undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which
are reported to the audit committee.

i. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Company’s
receivables from customers and investments in debt securities.

The carrying amount of following financial assets represents the maximum credit exposure:

The Company does not have higher concentration of credit risks to a single customer.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of its
customer base, including the default risk of the industry and country in which customers operate.

To measure the expected credit losses, trade receivables have been grouped based on shared
credit risk characteristics as follow:

Receivable from Brokerage and depository : Company has large number of customer base with
shared credit risk characteristics. Trade receivable have been bifurcated into various ageing buckets
and appropriate provisions have been created for each bucket against respective trade receivables
and the amount of ECL is recognised in the Statement of Profit and Loss.

Trade receivable of the company are of short duration with credit period of 5 days. In case of delay
in collection, the Company has right to charges interest (commonly referred as delayed payment
charges) on the outstanding amount. However, in case of receivable from depository, the Company
doesn’t have right to charge interest.

Receivable from Exchange (Unsecured) : There are no historical loss incurred in respect of Receivable
from exchange. Entire exposure/receivable as at each reporting period is received and settled within
7 days from reporting period. Therefore, no ECL is recognised in respect of receivable from exchange.

B. Margin Trading Facilities

Receivables from margin trading facility : In accordance with Ind AS 109, the Company applies expected
credit loss model (ECL) for measurement and recognition of impairment loss. The expected credit
loss is a product of exposure at default (EAD), probability of default (PD) and loss given default (LGD).
Company has large number of customer base with shared credit risk characteristics. Receivables
against margin trading facilities are secured by collaterals. As per policy of the Company, receivables
against Margin trade facilities to the extent not covered by collateral (i.e. unsecured portion) is
considered as default and are fully written off as bad debt against respective loan receivables and the
amount of loss is recognised in the Statement of Profit and Loss. Subsequent recoveries of amounts
previously written off are credited to the Statement of Profit and Loss as bad debts recovered. As per
Ind AS 109, the maximum period to consider when measuring expected credit losses is the maximum
contractual period (including extension options) over which the entity is exposed to credit risk and
not a longer period, even if that longer period is consistent with business practice. Therefore, no ECL
is recognised in respect of MTF.

As per simplified approach, the Company makes provision of expected credit losses on trade
receivables using a provision matrix to mitigate the risk of default in payments and makes appropriate
provision at each reporting date wherever outstanding is for longer period and involves higher risk.

Refer Note 64 for the ageing of the trade receivables.

With the applicability of Ind AS 109, the recognition and measurement of impairment of financial
assets is based on credit loss assessment by expected credit loss (ECL) model. The ECL assessment
involve significant management judgement. The Company’s impairment allowance is derived
from estimates including the historical default and loss ratios. Management exercises judgement
in determining the quantum of loss based on a range of factors, like staging criteria, calculation of
probability of default / loss and consideration of probability weighted scenarios and forward looking
macroeconomic factors. The board acknowledges and understands that these factors, since there is a
large increase in the data inputs required by the ECL model, which increases the risk of completeness
and accuracy of the data that has been used to create assumptions in the model. Based on the internal
management analysis, as per Board Opinion, there is no requirement of provision for expected credit
loss in several financial assets including the trade receivables and other receivables of the Company
and all are on fair value, based on the assessment and judgement made by the board of the Company.

ii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or another financial asset. The
Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient
liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without
incurring unacceptable losses or risking damage to the Company’s reputation.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date.
The amounts are gross and undiscounted, and include accrued interest payments and exclude the
impact of netting agreements.

iii. Market risk

Market risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate
because of changes in market prices. Market risk comprises following types of risk: interest rate risk
and currency risk. Financial instruments affected by market risk include borrowings.

a. Interest rate risk

Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will
fluctuate because of changes in market interest rates. The Company does not have exposure to
floating interest rates borrowings, therefore the company is not exposed to Interest rate risk.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair
value through profit or loss. Therefore, a change in interest rates at the reporting date would not
affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

The company does not have any financial assets or financial liabilities bearing floating interest
rates. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

b. Currency risk

The Company is not exposed to any currency risk on account of its borrowings, other payables
and receivables in foreign currency. All dealings are done in domestic markets by the company.
The functional currency of the Company is Indian Rupee.

NOTE : 37 CAPITAL MANAGEMENT

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market
confidence and to sustain future development of the business.

The primary objective of the Group’s capital management is to maximize the shareholder value and to ensure
the Group’s ability to continue as a going concern. No significant changes were made in the objectives for
managing capital during the years ended 31 March 2025 and 31 March 2024.

The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘Total equity’. For this purpose, adjusted
net debt is defined as total borrowings, comprising interest-bearing loans and borrowings less cash and cash
equivalents. Total equity comprises all components of equity.

NOTE : 44 SUBSEQUENT EVENTS
Proposed Dividend

The Board of Directors, have recommended a Dividend for the financial year ended on 31/03/2025 @ 10% (i.e.
'' 1/-) per equity share (Previous Year-@ 10%,i.e. '' 1/- per equity share) to the equity shareholders. The Dividend
will be paid after the approval of shareholders at ensuing Annual General Meeting. The date of book closure for
the entitlement of such dividend and Annual General Meeting shall be decided and informed in due course
of time.

As per Section 135 of the Companies Act, 2013, a company meeting the activity threshold needs to spend at least
2% of its average net profit for the immediately preceding three financial years on corporate social responsibility
(CSR) activities. The company undertook initiatives to channelise efforts to empower the underprivileged
constituents of society through programmes designed in the domains of Education, Healthcare and skill
development.

The Monarch Networth Capital Limited Employees Stock Options Scheme - 2021 is implemented through a
trust route in accordance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 (“SEBI
Regulations”) with an objective to motivate, retain and provide additional deferred rewards to the employees
who contribute to the growth and profitability of the company and further to create a sense of ownership and
participation amongst the employees to share the value they create for the company in the years to come.

The Board of Directors of the Company at its meeting held on July 28, 2024 approved issue of 1 (one) bonus
share of the Company of the face value of '' 10 each, for every 1 (one) fully paid up equity share of face value of
'' 10 each. ESOP disclosure for FY 2023-24 comprises the number of options at the opening date of financial
year 2023-24, are those numbers which are restated considering the bonus issue made during the financial
year 2024-25.

Nature, Timing of satisfaction of the performance obligation on and significant payment terms.

(i) Income from services rendered as a broker is recognised upon rendering of the services.

(ii) Fees for subscription on based services are received periodically but are recognised as earned on a pro¬
rata basis over the term of the contract.

(iii) Commissions from distribution of financial products are recognised upon allotment of the securities to
the applicant or as the case may be, on issue of the insurance policy to the applicant.

(iv) Interest is earned on delayed payments from clients and amounts funded to them as well as term deposits
with banks.

(v) Interest income is recognised on a time proportion basis taking into account the amount outstanding
from customers or on the financial instrument and the rate applicable.

(vi) Income from services rendered on behalf of depository is recognised upon rendering of the services, in
accordance with the terms of contract.

NOTE : 52 BENAMI PROPERTY HELD UNDER PROHIBITION OF BENAMI PROPERTY
TRANSACTIONS ACT, 1988 AND RULES MADE THEREUNDER

The Company does not have any benami property, where any proceeding has been initiated or pending
against the company for holding any Benami property as on 31 March 2025 and 31 March 2024.

NOTE : 53 WILFUL DEFAULTER

The Company is not declared as wilful defaulter by any bank or financial Institution or other lender during the
year ended 31 March 2025 and 31 March 2024.

NOTE : 54 DISCLOSURE OF TRANSACTIONS WITH STRUCK OFF COMPANIES

The Company does not have any transactions with companies struck off under Section 248 of the Companies
Act, 2013 during the year ended 31 March 2025 and 31 March 2024.

NOTE : 55 COMPLIANCE WITH APPROVED SCHEME(S) OF ARRANGEMENTS

No Scheme of Arrangements has been approved by/ pending with the Competent Authority in terms of
sections 230 to 237 of the Companies Act, 2013 during the year ended 31 March 2025 and 31 March 2024.

NOTE : 56 UNDISCLOSED INCOME

During the year ended 31 March 2025 and 31 March 2024, the Company did not have any transactions which
had not been recorded in the books of accounts that had been surrendered or disclosed as income during the
current and previous year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or
any other relevant provisions of the Income Tax Act, 1961)

NOTE : 57 COMPLIANCE WITH NUMBER OF LAYERS OF COMPANIES

During the year ended 31 March 2025 and 31 March 2024, the Company has complied with the requirements
of the number of layers prescribed under Section 2(87) of the Companies Act, 2013 read with Companies
(Restriction on number of Layers) Rules, 2017.

NOTE : 58 DETAILS OF CRYPTO CURRENCY OR VIRTUAL CURRENCY

The Company has not traded or invested in Crypto currency or Virtual Currency during the current financial
year and any of the previous financial years.

NOTE : 59 SECURITY OF CURRENT ASSETS AGAINST BORROWINGS

Quarterly statements of current assets filed with banks and financial institutions for fund borrowed from those
banks and financial institutions on the basis of security of current assets are in agreement with the books of
account.

NOTE : 60 UTILISATION OF BORROWED FUNDS AND SHARE PREMIUM

(A) During the year, the company has not advanced or loaned or invested funds to any other person(s) or
entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by
or on behalf of the company (Ultimate Beneficiaries)

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(B) During the year, the Company has not received any fund from any person(s) or entity(ies), including
foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that
the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any cmanner whatsoever
by or on behalf of the Funding Party(Ultimate Beneficiaries)

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

NOTE : 61 REGISTRATION OF CHARGES OR SATISFACTION OF CHARGES WITH REGISTRAR OF
COMPANIES (ROC)

During the years ended 31 March 2025 and 31 March 2024, there were no charges or satisfaction yet to be
registered with Registrar of companies beyond the statutory period.

During earlier years, the company has availed credit facilities from State Bank of Saurashtra, (now State Bank
of India), which has been fully repaid in earlier years. However, the said charge against the Charge ID- 10081290
is still disclosed as Open Charge in the records of Registrar of Companies (ROC). The management of the
company is in the process of filing of satisfaction of the said charge with ROC, Although it is only a procedural
requirement, since the said loan is already fully repaid.

NOTE : 62 RATIOS

Additional regulatory information required under (WB)(xvi) of Division III of Schedule III amendment, disclosure
of ratios, is not applicable as the Company is not a debt listed company as per Regulation 52 of SEBI’s Listing
Obligations and Disclosure Requirements (LODR)

As per the requirements of the rule 3(1) of the Companies (Accounts) Rule 2014 the Company uses only such
accounting software for maintaining its books of account that have a feature of recording audit trail of each
and every transaction creating an edit log of each change made in the books of account along with the date
when such changes were made, except that management is not in possession of an examination report to
determine whether the audit trail feature of the said software was enabled and operated at database level. This
feature of recording audit trail was in operation throughout the year and was not tampered with during the
year. The service provider has confirmed to the management that it takes a backup of the books of account
on a daily basis.

These financial statements are presented in Indian Rupees (INR), which is also its functional currency and all
values are rounded to the nearest Lakhs, except when otherwise indicated. The amounts which are less than ''
0.01 Lakhs are shown as '' 0.00 Lakhs.

NOTE : 67

Previous year’s figures have been regrouped or reclassified wherever necessary.

As per our Report of even date For and on behalf of the Board

Monarch Networth Capital Limited

For M S K A & ASSOCIATES Vaibhav Shah Manju Bafna

Chartered Accountants (Managing Director) (Chairperson & Whole-Time Director)

Firm Registration Number: 105047W DIN: 00572666 DIN: 01459885

Ajit Burli Gaurav Bhandari Govinda Meghani Nitesh Tanwar

(Partner) (Chief Executive Officer) (Chief Financial Officer) (Company Secretary)

Membership Number: 133147 ICSI Membership No: F10181

UDIN: 25133147BMLAOG7372

Place: Mumbai Place : Mumbai

Date: May 27, 2025 Date: May 27, 2025

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Mar 31, 2024

1.2.18 Provisions, Contingent liabilities, Contingent assets and Commitments:

General

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. When the Company expects some or all of a provision to be reimbursed, for example, under an insurance contract, the reimbursement is recognised as a separate asset, but only when the reimbursement is virtually certain. The expense relating to a provision is presented in the statement of profit and loss net of any reimbursement.

If the effect of the time value of money is material, provisions are discounted using a current pretax rate that reflects, when appropriate, the risks specific to the liability. When discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost.

Contingent liability is disclosed in the case of:

1. A present obligation arising from the past events, when it is not probable that an outflow of resources will be required to settle the obligation;

2. A present obligation arising from the past events, when no reliable estimate is possible;

3. A possible obligation arising from the past events, unless the probability of outflow of resources is remote.

Provisions, contingent liabilities, contingent assets and commitments are reviewed at each balance sheet date.

1.2.19 Earnings per share

Basic earnings per share are calculated by dividing the net profit for the period attributable to equity shareholders by the weighted average number of equity shares outstanding during the period. Earnings considered in ascertaining the Company’s earnings per share is the net profit for the period after deducting preference dividends and any attributable tax thereto for the period. The weighted average number of equity shares outstanding during the period and for all periods presented is adjusted for events, such as bonus shares, other than the conversion of potential equity shares that have changed the number of equity shares outstanding, without a corresponding change in resources.

For the purpose of calculating diluted earnings per share, the profit or loss for the period attributable to equity shareholders and the weighted average number of shares outstanding during the period is adjusted for the effects of all dilutive potential equity shares.

1.2.20 Use of estimates and judgments

The presentation of the financial statements are in conformity with the Ind AS which requires the management to make estimates, judgments and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and disclosure of contingent liabilities. Such estimates and assumptions are based on management’s evaluation of relevant facts and circumstances as on the date of financial statements. The actual outcome may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to the accounting estimates are recognised in the period in which the estimates are revised and in any future periods affected.

The following are significant management judgments in applying the accounting policies of the Company that have a significant effect on the financial statements.

Recognition of deferred tax assets The extent to which deferred tax assets can be recognised is based on an assessment of the probability of the Company’s future taxable income against which the deferred tax assets can be utilized. In addition, significant judgment is required in assessing the impact of any legal or economic limits or uncertainties in various tax jurisdictions.

Classification of assets and liabilities into current and non-current

The management classifies the assets and liabilities into current and non-current categories based on the operating cycle of the respective business / projects.

Impairment of assets

In assessing impairment, management estimates the recoverable amounts of each asset or CGU (in case of non-financial assets) based on expected future cash flows and uses an estimated interest rate to discount them. Estimation relates to assumptions about future cash flows and the determination of a suitable discount rate.

Useful lives of depreciable / amortisable assets (Property, plant and equipment, intangible assets and investment property)

Management reviews its estimate of the useful lives of depreciable / amortisable assets at each reporting date, based on the expected usage of the assets. Uncertainties in these estimates relate to technical and economic obsolescence that may change the usage of certain assets.

Defined benefit obligation (DBO)

The cost of defined benefit gratuity plan and the present value of the gratuity obligation along with leave salary are determined using actuarial valuations. An actuarial valuation involves making various assumptions such as standard rates of inflation, mortality, discount rate, attrition rates and anticipation of future salary increases. Due to the complexities involved in the valuation and its long-term nature, a defined benefit obligation is highly sensitive to changes in these assumptions. All assumptions are reviewed at each reporting date.

Share based payments

Estimating fair value for share based payment requires determination of the most appropriate valuation model. The estimate also requires determination of the most appropriate inputs to the valuation model including the expected life of the option, volatility and dividend yield and making assumptions about them.

Fair value measurements

Management applies valuation techniques to determine the fair value of financial instruments (where active market quotes are not available) and non-financial assets. This involves developing estimates and assumptions consistent with how market participants would price the instrument /assets. Management bases its assumptions on observable data as far as possible but this may not always be available. In that case management uses the best relevant information available. Estimated fair values may vary from the actual prices that would be achieved in an arm’s length transaction at the reporting date.

1.2.21 Statement of cash flows

Cash flow are reported using the indirect method, whereby net profit before tax is adjusted for the effects of transactions of a non-cash nature, any deferrals of accruals of past or future operating cash receipts or payments and item of income or expenses associated with investing or financing cash flows. The cash flows from operating, investing and finance activities of the Company are segregated.

1.2.22 Fair value measurement

The Company measures financial instruments, such as, derivatives at fair value at each balance sheet date.

Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value measurement is based on the presumption that

the transaction to sell the asset or transfer the liability takes place either:

1. In the principal market for the asset or liability, or

2. In the absence of a principal market, in the most advantageous market for the asset or liability.

The principal or the most advantageous market must be accessible by the Company.

The fair value of an asset or a liability is measured using the assumptions that market participants would use when pricing the asset or liability, assuming that market participants act in their economic best interest.

The Company uses valuation techniques that are appropriate in the circumstances and for which sufficient data are available to measure fair value, maximising the use of relevant observable inputs and minimising the use of unobservable inputs.

All assets and liabilities for which fair value is measured or disclosed in the financial statements are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

1. Level 1 — Quoted (unadjusted) market prices in active markets for identical assets or Liabilities.

2. Level 2 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is directly or indirectly observable.

3. Level 3 — Valuation techniques for which the lowest level input that is significant to the fair value measurement is unobservable.

For assets and liabilities that are recognised in the financial statements on a recurring basis, the Company determines whether transfers have occurred between levels in the hierarchy by reassessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

External valuers are involved for valuation of significant assets, such as unquoted financial assets. Involvement of external valuers is decided upon annually by the Valuation Committee after discussion with and approval by the management. Selection criteria include market knowledge, reputation, independence and whether professional standards are maintained. Valuers are normally rotated every three years. The management decides, after discussions with the Company’s external valuers, which valuation techniques and inputs to use for each case.

At each reporting date, the management analyses the movements in the values of assets and liabilities which are required to be remeasured or re-assessed as per the Company’s accounting policies. For this analysis, the management verifies the major inputs applied in the latest valuation by agreeing the information in the valuation.

The management, in conjunction with the Company’s external valuers, also compares the change in the fair value of each asset and liability with relevant external sources to determine whether the change is reasonable.

For the purpose of fair value disclosures, the Company has determined classes of assets and liabilities on the basis of the nature, characteristics and risks of the asset or liability and the level of the fair value hierarchy as explained above.

This note summarizes accounting policy for fair value. Other fair value related disclosures are given in the relevant notes.

d Terms / Rights attached to each classes of shares

Terms / Rights attached to Equity shares

The Company has only one class of equity shares with voting rights having a par value of Re 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

The Board of Directors, have recommended a Dividend for the financial year ended on 31/03/2024 @ 10% (i.e. '' 1/-) per equity share (Previous Year - '' 1/-) to the equity shareholders. The Dividend will be paid after the approval of shareholders at ensuing Annual General Meeting. The date of book closure/ record date for the entitlement of such dividend and Annual General Meeting shall be decided and informed in due course of time.

I n the event of liquidation of the Company, the shareholders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

The Description of the nature and purpose of each reserve within equity is as follows:

a) Capital reserve: Capital Reserves are mainly the reserves created during business combination for the gain on bargain purchase.

b) Securities Premium Reserve: Securities premium reserve is credited when shares are issued at premium. It is utilised in accordance with the provisions of the Act, to issue bonus shares, to provide for premium on redemption of shares or debentures, write-off equity related expenses like underwriting costs, etc.

c) Share Based Payment Reserve: This reserve is created by debiting the statement of profit and loss account with the value of share options granted to the employees by the Company. Once shares are issued by the Company, the amount in this reserve will be transferred to Share capital, Securities premium or retained earnings

d) Retained earnings: Retained earnings represents undistributed profits of the company

e) Other comprehensive income:

(i) The company has elected to recognise changes in the fair value of investments in equity securities in other comprehensive income. These changes are accumulated within the FVTOCI equity investments within equity.

(ii) Remeasurements of defined benefit liability comprises of actuarial gains and losses.

NOTE: 32 EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders (after adjusting for interest on the convertible preference shares) by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

(ii) Defined Benefit Plan:

A) The Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC of India, a funded defined benefit plan for qualifying employees. The scheme provides for payment as under:

i) On normal retirement / early retirement / withdrawal / resignation:

As per the provisions of the Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death in service:

As per the provisions of the Payment of Gratuity Act, 1972 without any vesting period.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at March 31, 2024. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company’s financial statements as at balance sheet date:

c) Adoption of Ind AS 116

The Company has adopted Ind AS 116, effective annual reporting period beginning from April 1, 2019 using the modified retrospective method with the cumulative effect of initially applying the Standard, recognised on the date of initial application (April 1, 2019).

On transition, the Company carried out a test of lease liability measured at the present value of the remaining lease payments. Based on the analysis of the management, the board is of the opinion that there is no significant impact of the application of provision on the financial statements of the company, considering the nature, amount and tenure of the lease agreements. Hence no recognition of the Right of use assets and corresponding Lease liabilities and provision for Interest cost on lease liabilities and Depreciation on right of use assets are made by the company. Lease rentals paid by the company are recognised under the head "Other Expenses” under Note No 30 in the notes to the financial statements and Security Deposits are recognised as ""Other Non-Current Financial Assets”” under Note No 5 in the notes to the financial statements.

NOTE: 36 FAIR VALUE DISCLOSURES

1. Financial instruments - Fair values and risk management

A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

B. Measurement of fair values (Key inputs for valuation techniques) :

1. Listed Equity Investments (other than Subsidiaries, Joint Ventures and Associates): Quoted Bid Price on Stock Exchange (Level 1)

2. Forward contracts : Forward exchange rate is taken from Foreign Exchange Dealers Association of India (FEDAI) (Level 1)

3. Valuation techniques and significant unobservable inputs: Not applicable (Level 3)

Transfers between Levels 1 and 2

There were no transfer from Level 1 to Level 2 or vice versa in any of the reporting periods.

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

Credit risk ;

Liquidity risk ; and Market risk

i. Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The committee reports regularly to the board of directors on its activities.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investments in debt securities.

The carrying amount of following financial assets represents the maximum credit exposure:

The Company does not have higher concentration of credit risks to a single customer.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Board of Directors has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they are available, and in some cases bank references. Sale limits are established for each customer and reviewed half yearly. Any sales exceeding those limits require approval from the Board of Directors.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics as follow:

Receivable from Exchange (Unsecured) : There are no historical loss incurred in respect of Receivable from exchange. Entire exposure/receivable as at each reporting period is received and settled within 7 days from reporting period. Therefore, no ECL is recognised in respect of receivable from exchange.

Receivable from Brokerage and depository : Company has large number of customer base with shared credit risk characteristics. As per policy of the Company, trade receivable to the extent not covered by collateral (i.e. unsecured trade receivable) is considered as default and are fully written off as bad debt against respective trade receivables and the amount of loss is recognised in the Statement of Profit and Loss. Subsequent recoveries of amounts previously written off are credited to the income statement as bad debts recovered. Trade receivable of the company are of short duration with credit period ranging up to maximum 30 days. In case of delay in collection, the Company has right to charges interest (commonly referred as delayed payment charges) on overdue amount for the overdue period. However, in case of receivable from depository, the Company doesn’t have right to charge interest. Though credit period given to customer in respect of receivable from depository is very short, generally there is significant delay in ultimate collection. The Company has computed expected credit loss due to significant delay in collection. Incremental borrowing rate is considered as effective interest rate on these trade receivable for the purpose of computing time value loss.

Receivables from margin trading facility : In accordance with Ind AS 109, the Company applies expected credit loss model (ECL) for measurement and recognition of impairment loss. The expected credit loss is a product of exposure at default (EAD), probability of default (PD) and Loss given default (LGD). The financial assets have been segmented into three stages based on the risk profiles, primarily based on past due. Company has large number of customer base with shared credit risk characteristics. Receivables against margin trading facilities are secured by collaterals. As per policy of the Company, Receivables against Margin trade facilities to the extent not covered by collateral (i.e. unsecured portion) is considered as default and are fully written off as bad debt against respective loan receivables and the

iv. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk and interest rate risk. Thus, our exposure to market risk is a function of revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Currency risk

The Company is not exposed to any currency risk on account of its borrowings, other payables and receivables in foreign currency. All dealings are done in domestic markets by the company. The functional currency of the Company is Indian Rupee.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing finacial instruments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instruments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

Company’s interest rate risk arises from borrowings and fixed income financial instruments. Borrowings issued at fixed rates exposes to fair value interest rate risk. The interest rate profile of the Company’s interest-bearing financial instruments as reported to the management of the Company is as follows.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

The company does not have any financial assets or financial liabilities bearing floating interest rates. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

NOTE : 37 CAPITAL MANAGEMENT

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose, adjusted net debt is defined as total borrowings, comprising interest-bearing loans and borrowings less cash and cash equivalents. Adjusted equity comprises all components of equity.

NOTE: 38 RELATED PARTY RELATIONSHIPS, TRANSACTIONS AND BALANCES A Nature of relationship

I Subsidiary Companies

1 Monarch Networth Finserve Private Limited

2 Monarch Networth Investment Advisors Private Limited

3 Monarch Networth Capital IFSC Pvt Ltd

4 Monarch Networth Money Changers Private Limited (ceased to be a subsidiary w.e.f quarter ended 30^th September 2023)

II Associate Companies

1 Networth Financial Services Ltd (ceased to be an associate w.e.f quarter ended 30^th September 2023)

III Enterprises overwhich Directors / Promotor / KMP and their relatives exercise significant influence

1 Premjayanti Properties

2 Monarch Infra Ventures

3 Krone Investments

4 Vibrant Investments

5 Mahaveer Equibiz

6 Monarch Comtrade Private Limited

The company has taken suitable legal action for recovering deposits of '' 40 lakhs (previous year '' 40 lakhs) for premises at Bangalore and '' 300 lakhs (previous year '' 300 lakhs) for premises at Nariman Point- Mumbai. The management expects favorable order for the same, hence no provisions have been made thereof.

NOTE : 41

The company has taken suitable legal action for recovering debts of '' 239 lakhs (previous year '' 239 lakhs) for fraudulent transaction done by client in the year 2008-09. SEBI has passed the interim order withholding the payout which is kept with Bombay Stock Exchange till completion of investigation. The management expects favorable order for the same, hence no provisions have been made thereof.

NOTE : 43

The Company has an informal process of obtaining confirmations from the vendors to record whether they are covered under Micro, Small and Medium Enterprise Development Act 2006 as well as they have filed required memorandum with prescribed authority. Based on and to the extent of the information received by the Company from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and relied upon by the auditors, the relevant particulars as at the year end are furnished below:

NOTE : 48

The Company has carried out Impairment test on its Fixed Assets as on the date of Balance Sheet and the management is of the opinion that there is no asset for which provision of impairment is required to be made as per applicable Indian Accounting Standard.

NOTE : 49

Balance of Receivables and Payables, including Trade Receivables, loans, deposits & advances given as well as taken, payable to vendors, etc, are subject to confirmation and consequent reconciliation and adjustments, if any. Hence, the effect thereof, on Profit/ Loss, Assets and Liabilities, if any, is not ascertainable, which may be considerable. As per the opinion of the Board, there will be no substantial impact on their reconciliation with their balance confirmations as on the reporting date.

NOTE : 50

All Property, Plant and Equipment were physically verified by the management of the of the company in accordance with a planned program of verifying them once in three years. As per the opinion of the Board, there will be no substantial impact on their reconciliation with their physical verification as on the reporting date.

NOTE :51

In the opinion of the board, the current assets, loans and advances are approximately of the value state, if realized in ordinary course of business. The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

NOTE : 52

Events Occurring After the Balance Sheet Date

To the best of knowledge of the management, there are no events occurring after the Balance Sheet date that provide additional information materially affecting the determination of the amounts relating to the conditions existing at the Balance Sheet Date that requires adjustment to the Assets or Liabilities of the Company.

The Company provides for the use by its subsidiaries certain facilities like use of premises infrastructure and other facilities / services and the same are termed as ‘Shared Services’. The cost of such Shared Services are recovered from subsidiaries either on actual basis or on reasonable management estimates which are constantly refined in the light of additional knowledge gained relevant to such estimation.

NOTE: 56

Corporate social responsibility

Pursuant to the application of Section 135 of the Act and the Rules framed thereunder, the Company has constituted the CSR committee during the year. The company is required to spend at least two per cent of the average net profits of the company made during the three immediately preceding financial years as per the activities which are specified in Schedule VII of the Act and the Company has decided to spend the amount by way of contribution to a Trust . The disclosure as required by the Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities issued by the Institute of Chartered Accounts of India are as follows:

NOTE : 57

Employee Stock Option Plan

The Monarch Networth Capital Limited Employees Stock Options Scheme - 2021 was approved by the Board of Directors and Shareholders of the Company on June 18, 2021 and July 20, 2021 respectively. The Scheme is implemented through a trust route in accordance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 ("SEBI Regulations”) with an objective to motivate, retain and provide additional deferred rewards to the employees who contribute to the growth and profitability of the company and further to create a sense of ownership and participation amongst the employees to share the value they create for the company in the years to come.

Accordingly during the year 2022-23, 5,00,000 ESOPs equivalent to equal number of Equity Shares were offered and granted to eligible employees under the said scheme, presently 4,69,000 ESOPs are outstanding under the scheme . Details of the same are given below:

NOTE : 61

Revenue From Contract With Customers

The Company derives revenue primarily from the Share Broking Business. Its other major revenue sources are

Portfolio Management Services and Interest Income

Disaggregate revenue information

1. The table below presents disaggregate revenues from contracts with customers for the year ended March 31, 2024 and March 31, 2023. The Company believes that this disaggregation best depicts how the nature, amount, timing and uncertainty of revenue and cash flows are affected by market and other economic factors.

Nature of Services

(a) Stock Broking services - Income from services rendered as a broker is recognised upon rendering of the services, in accordance with the terms of contract. This includes Brokerage, Demat Services, Late Payment Charges income & Interest Income from Margin Funding

(b) Other operating revenues - This includes revenue generated from Merchant Banking services, Financial Products Distribution, Financial Advisory Services, etc incurred by the company in the normal course of operations during the year.

3. Nature, Timing of satisfaction of the performance obligation on and significant payment terms.

(i) Income from services rendered as a broker is recognised upon rendering of the services.

(ii) Fees for subscription on based services are received periodically but are recognised as earned on a prorata basis over the term of the contract.

(iii) Commissions from distribution of financial products are recognised upon allotment of the securities to the applicant or as the case may be, on issue of the insurance policy to the applicant.

(iv) I nterest is earned on delayed payments from clients and amounts funded to them as well as term deposits with banks.

(v) Interest income is recognised on a time proportion basis taking into account the amount outstanding from customers or on the financial instrument and the rate applicable.

(vi) Income from services rendered on behalf of depository is recognised upon rendering of the services, in accordance with the terms of contract.

The above services are point in time in nature, and no performance obligation remains once the transaction is executed. Fees for subscription on based services are received periodically but are recognised as earned on a pro-rata basis over the term of the contract, and are over the period in nature.

NOTE : 63

Monarch Alternative Investment Fund

A. MNCL Capital Compounder Funds

Monarch Networth Capital Ltd, being the Investment Manager and Sponsor of Monarch AIF (Alternative Investment Fund) - Category III, a SEBI registered fund as defined under Securities Exchange Board of India (Alternative Investment Funds) Regulations, 2012, has invested a sum of '' 5 Crores in a scheme of Monarch AIF i.e. MNCL CAPITAL COMPOUNDER FUND (‘the Fund’) for a period of 3 years (which can be extended by upto 2 years). MNCL CAPITAL COMPOUNDER FUND is a Category 3 long only AIF Equity fund which is launched by Monarch AIF.

Key Features of the fund are as follows:

- | MNCL Capital Compounder Fund’ is a close ended scheme of the Trust and is offering through a

private placement Class A Units, Class B Units, Class C Units and such other Class(es) /Subclass(es) of Units as the Investment Manager may decide from time to time for subscription aggregating to '' 100,00,00,000 (Indian Rupees One Hundred Crores) with a green shoe option of up to '' 50,00,00,000 (Indian Rupees Fifty Crores). The Fund is a scheme of an Indian trust set-up under the Indian Trusts Act, 1882 and is registered with SEBI as a Category III AIF under the Regulations and would be operated in compliance with other Applicable Laws.

- Sponsor’s Contribution by MNCL : As per the terms of The Sponsor/Investment Manager shall commit an amount equivalent to 5% (five percent) of the Corpus or '' 10,00,00,000 (Rupees Ten Crore), whichever is lower, and shall maintain a continuing interest in the Fund in accordance with the Regulations.

- ‘ Beacon Trusteeship Limited’ shall act as the Trustee to the Trust. The Trustee shall have all powers in respect of the property of the Trust, including power to manage the same, which would be delegated to the Investment Manager in terms of the Investment Management Agreement. The Trustee shall not interfere with the actions of the Investment Manager so long as the actions are within the powers of the Investment Manager.

- Commitment Period : The Commitment Period for the Fund shall commence from the date of execution of Contribution Agreement on 28-09-2020 and shall end on the expiry of 3 (three) months from the Final Closing that may be extended for a further period up to 3 (three) months by the Investment Manager. During which the Capital Commitments can be drawn down upon issuance of a Drawdown Notice to the Contributors.

- Lock-in Period : Lock-in Period means the period commencing from the date of signing of the respective Contribution Agreement till the expiry of 18 (eighteen) months from the date of last Drawdown or the date of Final Closing, whichever is later. To clarify, no exit of any Units shall be allowed during the Lock-in Period, except at the discretion of the Investment Manager.

- Management Fee : Pursuant to the Investment Management Agreement, the Investment Manager will be entitled to receive Management Fee, that will accrue and commence from the date of First Closing and shall be chargeable on annual basis in arrears in respect of Class A Units and Class C Units. The Management Fee shall be charged up to 0.5% (zero point five percent) p.a. on the NAV (calculated at the beginning of each year) of Class A Units and Class C Units. No Management Fee shall be payable with respect to the holders of Class B Units. The Revenue from Management Fees is disclosed under "Note: 20 : Revenue from operations”.

- Performance Fee : The Investment Manager will establish and maintain an account for the Fund. The Fund’s account will contain separate capital accounts (each a "Capital Account”) in order to separately track the Net Asset Value of each Contributor’s Units in the Fund. The Investment Manager shall charge performance fee ("Performance Fee”) based on the performance of each Capital Account at the rate of 15% (fifteen percent) p.a. of all the profits after deducting Fund Expenses (except Performance Fee), reserves, provisions/withholdings, (in case the profits are higher than the Hurdle Rate of Return) from the holders of Class A Units and Class C Units, on annual basis at the end of financial year or shorter period in certain circumstances as listed out in the Contribution Agreements viz. in case of exit etc. The Performance Fee shall be charged at the end of each year on an annual basis. The Revenue from performance Fees is disclosed under "Note: 20 : Revenue from operations”.

- Hurdle Rate of Return : The hurdle rate of return shall be the compounded rate of return of an INR based calculation of 10% (pre-Tax) on an annualized basis.

- Set-up Cost : The Investment Manager will charge one-time Set-up Cost from the holders of Class A Units and Class C Units at actuals subject to a limit of up to 0.5% (zero point five percent) of the aggregate Capital Commitments by the holders of Class A Units and Class C Units. The Investment Manager may, in its discretion reduce/waive the Set-Up Cost payable by an Investor. No Set-up Cost shall be payable with respect to the holders of Class B Units.

B. MNCL Capital Compounder Fund - I

Monarch Networth Capital Ltd, being the Investment Manager and Sponsor of Monarch AIF (Alternative Investment Fund) - Category III, a SEBI registered fund as defined under Securities Exchange Board of India (Alternative Investment Funds) Regulations, 2012, has invested a sum of '' 10 Crores in a scheme of Monarch AIF i.e. MNCL CAPITAL COMPOUNDER FUND - I (‘the Fund’) for a period of 3 years (which can be extended by upto 2 years). MNCL CAPITAL COMPOUNDER FUND - I is a Category 3 long only AIF Equity fund which is launched by Monarch AIF.

Key Features of the fund are as follows:

- ‘ MNCL Capital Compounder Fund - I’ is the second close ended scheme of the Trust and is offering through a private placement Class A Units, Class B Units, Class C Units and such other Class(es) / Subclass(es) of Units as the Investment Manager may decide from time to time for subscription aggregating to '' 250,00,00,000 (Indian Rupees Two Hundred Fifty Crores) with a green shoe option of up to '' 2,00,00,00,000 (Indian Rupees Two Hundred Crores). The Fund is a scheme of an Indian trust set-up under the Indian Trusts Act, 1882 and is registered with SEBI as a Category III AIF under the Regulations and would be operated in compliance with other Applicable Laws.

- Sponsor’s Contribution by MNCL : As per the terms of The Sponsor/Investment Manager shall commit an amount equivalent to 5% (five percent) of the Corpus or '' 10,00,00,000 (Rupees Ten Crore), whichever is lower, and shall maintain a continuing interest in the Fund in accordance with the Regulations.

- ‘ Beacon Trusteeship Limited’ shall act as the Trustee to the Trust. The Trustee shall have all powers in respect of the property of the Trust, including power to manage the same, which would be delegated to the Investment Manager in terms of the Investment Management Agreement. The Trustee shall not interfere with the actions of the Investment Manager so long as the actions are within the powers of the Investment Management Agreement and conform to the Regulations and the objectives of the Trust and the Fund.

- Commitment Period : The First Closing of the Fund shall be held within a period of 6 (six) months from the date of receipt of confirmation from SEBI for launch of the Fund, subject to the Fund receiving Capital Commitments of at least INR 20,00,00,000 (Indian Rupees Twenty Crores) or any other higher amount as decided by the Investment Manager in accordance with the Regulations. The Investment Manager may extend the First Closing by a period of up to 3 (three) months at its sole discretion. The Investment Manager has the discretion to hold one or more Subsequent Closings. The Final Closing shall be held on or before the expiry of 12 (twelve) months from the First Closing. The Investment Manager may extend the Final Closing by up to 3 (three) months at its sole discretion, pursuant to which admission of investors as Contributors in the Fund shall stand finalised.

- Lock-in Period : Units issued to Contributors shall be locked in till the expiry of 18 (Eighteen) months from the date of allotment of Units ("Lock-in Period”). No redemptions will be allowed during the Lock-in Period.

- Management Fee : Pursuant to the Investment Management Agreement, The Management Fee shall be chargeable at the rate of upto 1% (One Percent) p.a. in respect of Class A Units and Class C Units, payable at the end of each year (or at such intervals as determined by the Investment Manager and as stated in the Contribution Agreement) on the NAV (before taking into account the Fund Expenses, Performance Fees and Tax liabilities) calculated at the start of every year on the relevant Valuation Day. No Management Fee shall be payable with respect to the holders of Class B Units. The Revenue from Management Fees is disclosed under "Note: 20 : Revenue from operations”.

- Performance Fee : The Investment Manager shall charge a Performance Fee to the holders of Class A Units and Class C Units at the rate of 15% p.a. of the incremental Pre-Tax NAV of Class A Units and Class C Units (over and above the Hurdle Rate of Return) during a Determination Period. The Performance fees will be increased by any applicable GST and other statutory charges payable thereon. This fee will be charged by the Investment Manager directly to the relevant Contributors or to the Fund. The Investment Manager, in its sole discretion, may waive or reduce the Performance Fee for a particular Contributor /Class / Subclass of Units. There shall be no Performance Fee payable with respect to Class B Units. The Revenue from performance Fees is disclosed under "Note: 20 : Revenue from operations”.

- Hurdle Rate of Return : The Hurdle Rate of Return applicable to Class A Units and Class C Units shall be 10% (ten percent) in Indian Rupee terms. The Hurdle Rate of Return shall not be applicable with respect to holders of Class B Units.

- Set-up Cost : The Investment Manager will not charge any Set-up Cost from any unit holders.

NOTE : 64

Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder

The Company do not have any benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

NOTE : 65 Wilful Defaulter

The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.

NOTE : 66

Misutilisation of Bank Borrowing

In the opinion of the management of the company, to the best of its knowledge and belief, the company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

NOTE : 67

Disclosure of transactions with struck off companies

The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

NOTE : 68

Compliance with approved Scheme(s) of Arrangements

No Scheme of Arrangements has been approved by/ pending with the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year as well as previous year

NOTE : 69 Undisclosed Income

The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

NOTE : 70

Compliance with number of layers of companies

The compliance of number of layers of companies, prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017, are not applicable to the company.

NOTE : 71

Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the current financial year and any of the previous financial years.

NOTE : 72

Security of current assets against borrowings

Quarterly statements of current assets filed with banks and financial institutions for fund borrowed from those banks and financial institutions on the basis of security of current assets are in agreement with the books of account.

NOTE : 73

Utilisation of Borrowed funds and share premium:

(A) During the year, the company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries)

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(B) During the year, the Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party(Ultimate Beneficiaries)

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries NOTE : 74

Registration of charges or satisfaction of charges with Registrar of Companies (ROC)

The Company do not have any charges or satisfaction of charges which is yet to be registered with ROC during the Financial Year, except

- During earlier years, the company has availed credit facilities from State Bank of Saurashtra, (now State Bank of India), which has been fully repaid in earlier years. However, the said charge against the Charge ID-10081290 is still disclosed as Open Charge in the records of Registrar of Companies (ROC). The management of the company is in the process of filing of satisfaction of the said charge with ROC, Although it is only a procedural requirement, since the said loan is already fully repaid. "

NOTE : 75 Ratios

Additional regulatory information required under (WB)(xvi) of Division III of Schedule III amendment, disclosure of ratios, is not applicable to the Company as it is in broking business and not an NBFC registered under Section 45-IA of Reserve Bank of India Act, 1934.

NOTE : 79

These financial statements are presented in Indian Rupees (INR), which is also its functional currency and all values are rounded to the nearest lakhs, except when otherwise indicated. The amounts which are less than '' 0.01 Lakhs are shown as ''0.00 Lakhs.

NOTE : 80

Previous year’s figures have been regrouped or reclassified wherever necessary.

As per our Report of even date For and on behalf of the Board

Monarch Networth Capital Limited CIN: L65920GJ1993PLC120014

For PAREKH SHAH & LODHA Vaibhav Shah Manju Bafna

Chartered Accountants (Managing Director) (Whole-Time Director)

(Firm Reg. No. 107487W ) Din:00572666 Din: 01459885

Amit Saklecha Gaurav Bhandari Nitesh Tanwar

(Partner) (Chief Executive Officer) (Company Secretary)

M.No. 401133 Membership No: F10181

UDIN: 24401133BKADTP3300

Place : Mumbai Place : Mumbai Place : Mumbai

Date: May 24, 2024 Date: May 24, 2024 Date: May 24, 2024

---

Mar 31, 2023

1. Title deeds of Immovable Properties not held in name of the Company

The Company do not have any immovable properties where title deeds are not held in the name of the company.

2. Revaluation of PPE

Since the company has not carried out any revaluation of its Property, Plant and Equipment (including Right-of-Use Assets) held by the company during the year, the requirement of disclosure regarding any revaluation of the same is not applicable to the company.

1. Revaluation of Intangible assets

Since the company has not carried out any revaluation of its intangible assets held by the company during the year, the requirement of disclosure regarding any revaluation of the same is not applicable to the company.

*Stock in trade represents shares held as on balance sheet date at valued at fair value being shares held by virtue of acting as a merchant banker and market maker for the acquired equity shares. Balance in vandha & trading error A/c. are basically shares held as a result of Trading Error or Vandha Accounts of clients. In absence of information, disclosure relating quantity has not been given.

0 The Company applies the Ind AS 109 simplified approach to measuring expected credit losses (ECLs) for trade receivables at an amount equal to lifetime ECLs. The ECLs on trade receivables are calculated based on actual historic credit loss experience over the preceding three to five years on the total balance of noncredit impaired trade receivables. The Company considers a trade receivable to be credit impaired when one or more detrimental events have occurred, such as significant financial difficulty of the client or it becoming

probable that the client will enter bankruptcy or other financial reorganization. When a trade receivable is credit impaired, it is written off against trade receivables and the amount of the loss is recognised in the income statement. As per management opinion, there is no Expected Credit Loss in Trade Receivables of the Company and all are on fair value, based on the assessment and judgement made by the management comprising directors of the company.

0 The company’s exposure to credit and currency risks, and loss allowances related to trade receivables are disclosed in Note 36 : Fair value disclosures

0 No trade or other receivable are due from directors or other officers of the company either severally or jointly with any other person. Nor any trade or otherreceivable are due from firms or private companies respectively in which any directoris a partner, a director or a member

0 Please also refer Note No. 76 for the Trade Receivables Ageing Schedule

d Terms / Rights attached to each classes of shares

Terms / Rights attached to Equity shares

The Company has only one class of equity shares with voting rights having a par value of Re 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting, except in case of interim dividend.

The Board of Directors, have recommended a Dividend for the financial year ended on 31/03/2023 @ 10% (i.e. '' 1/-) per equity share (Previous Year - '' 1/-) to the equity shareholders. The Dividend will be paid after the approval of shareholders at ensuing Annual General Meeting. The date of book closure for the entitlement of such dividend and Annual General Meeting shall be decided and informed in due course of time.

I n the event of liquidation of the Company, the shareholders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

g The company had not issued any bonus share for consideration other than cash and no share had bought back during the period of five years immediately preceding the reporting date.

h During the financial year 2021-2022, the Company has issued 29,90,000 Fully Convertible Warrants to the persons belonging to ‘Non-Promoter’ category, on a preferential basis, at a issue price of '' 72/- per warrant, for an aggregate amount of '' 2,152.80 lakhs, entitling them for subscription of equivalent number of fully paid-up Equity Shares of face value of '' 10/- each (including premium of '' 62/- per Share), under Regulation 28(1) of the SEBI (LODR) Regulations, 2015.

The holder of the warrants are required to exercise the option to subscribe to equity shares of face value of '' 10/- each (including premium of '' 62/- per share), within a period of 18 months from the date of allotment.

During the year under review, on February 4, 2023 the Company had issued 28,20,000 Equity shares of face value of '' 10/- each (Rupees Ten Only) out of 29,90,000 Fully Convertible Warrants as specified above. Rest 1,70,000 Fully Convertible Warrants have been forfeited.

The Description of the nature and purpose of each reserve within equity is as follows:

a) Capital reserve: Capital Reserves are mainly the reserves created during business combination for the gain on bargain purchase.

b) Securities Premium Reserve: Securities premium reserve is credited when shares are issued at premium. It is utilised in accordance with the provisions of the Act, to issue bonus shares, to provide for premium on redemption of shares or debentures, write-off equity related expenses like underwriting costs, etc.

c) Share Based Payment Reserve: This reserve is created by debiting the statement of profit and loss account with the value of share options granted to the employees by the Company. Once shares are issued by the Company, the amount in this reserve will be transferred to Share capital, Securities premium or retained earnings

d) Retained earnings: Retained earnings represents undistributed profits of the company

e) Other comprehensive income:

(i) The company has elected to recognise changes in the fair value of investments in equity securities in other comprehensive income. These changes are accumulated within the FVTOCI equity investments within equity.

(ii) Remeasurements of defined benefit liability comprises of actuarial gains and losses.

NOTE 32: EARNINGS PER SHARE (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders (after adjusting for interest on the convertible preference shares) by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares.

The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income by each jurisdiction in which the relevant entity operates and the period over which deferred income tax assets will be recovered.

NOTE 34: EMPLOYEE BENEFIT EXPENSE

The Company contributes to the following post-employment defined benefit plans in India.

(i) Defined Contribution Plans:

The Company makes contributions towards provident fund to a defined contribution retirement benefit plan for qualifying employees. Under the plan, the Company is required to contribute a specified percentage of payroll cost to the retirement benefit plan to fund the benefits.

The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Company recognised following amounts for provident fund and ESIC contributions in the Statement of Profit and Loss.

(ii) Defined Benefit Plan:

A) The Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC of India, a funded defined benefit plan for qualifying employees. The scheme provides for payment as under:

i) On normal retirement / early retirement / withdrawal / resignation:

As per the provisions of the Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death in service:

As per the provisions of the Payment of Gratuity Act, 1972 without any vesting period.

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at March 31, 2023. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Based on the actuarial valuation obtained in this respect, the following table sets out the status of the gratuity plan and the amounts recognised in the Company’s financial statements as at balance sheet date:

c) Adoption of Ind AS 116

The Company has adopted Ind AS 116, effective annual reporting period beginning from 1 April 2019 using the modified retrospective method with the cumulative effect of initially applying the Standard, recognised on the date of initial application (April 1, 2019).

On transition, the Company carried out a test of lease liability measured at the present value of the remaining lease payments. Based on the analysis of the management, the board is of the opinion that there is no significant impact of the application of provision on the financial statements of the company, considering the nature, amount and tenure of the lease agreements. Hence no recognition of the Right of use assets and corresponding Lease liabilities and provision for Interest cost on lease liabilities and Depreciation on right of use assets are made by the company. Lease rentals paid by the company are recognised under the head "Other Expenses” under Note No 30 in the notes to the financial statements and Security Deposits are recognised as ""Other Non-Current Financial Assets”” under Note No 5 in the notes to the financial statements.

NOTE 36: FAIR VALUE DISCLOSURES

1. Financial instruments - Fair values and risk management

A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

(1) Assets that are not financial assets, in the opinion of the management are not included.

(2) Other liabilities that are not financial liabilities, in the opinion of the management are not included.

(3) In the opinion of the management, based on the details available with the company, all the financial assets and liabilities are tested for valuation, to identify their fair value, as prescribed in Indian Accounting Standards, and are measured at fair value, to the extent possible. The assets/ liabilities, which are not possible to be measured at fair value, in the opinion of the management, in the opinion of the management, are presented in the financial statements at their book value, without any adjustment towards fair valuation.

B. Measurement of fair values (Key inputs for valuation techniques) :

1. Listed Equity Investments (other than Subsidiaries, Joint Ventures and Associates): Quoted Bid Price on Stock Exchange (Level 1)

2. Forward contracts : Forward exchange rate is taken from Foreign Exchange Dealers Association of India (FEDAI) (Level 1)

3. Valuation techniques and significant unobservable inputs: Not applicable (Level 3)

Transfers between Levels 1 and 2

There were no transfer from Level 1 to Level 2 or vice versa in any of the reporting periods.

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

0 Credit risk ;

0 Liquidity risk ; and 0 Market risk

i. Risk management framework

The Company’s board of directors has overall responsibility for the establishment and oversight of the Company’s risk management framework. The board of directors has established the Risk Management Committee, which is responsible for developing and monitoring the Company’s risk management policies. The committee reports regularly to the board of directors on its activities.

The Company’s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company’s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company’s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company’s receivables from customers and investments in debt securities.

The carrying amount of following financial assets represents the maximum credit exposure:

The Company does not have higher concentration of credit risks to a single customer.

The Company’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Board of Directors has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company’s standard payment and delivery terms and conditions are offered. The Company’s review includes external ratings, if they are available, and in some cases bank references. Sale limits are established for each customer and reviewed half yearly. Any sales exceeding those limits require approval from the Board of Directors.

To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics as follow:

Receivable from Exchange (Unsecured) : There are no historical loss incurred in respect of Receivable from exchange. Entire exposure/receivable as at each reporting period is received and settled within 7 days from reporting period. Therefore, no ECL is recognised in respect of receivable from exchange.

Receivable from Brokerage and depository: Company has large number of customer base with shared credit risk characteristics. As per policy of the Company, trade receivable to the extent not covered by collateral (i.e. unsecured trade receivable) is considered as default and are fully written off as bad debt against respective trade receivables and the amount of loss is recognised in the Statement of Profit and Loss. Subsequent recoveries of amounts previously written off are credited to the income statement as bad debts recovered. Trade receivable of the company are of short duration with credit period ranging up to maximum 30 days. In case of delay in collection, the Company has right to charges interest (commonly referred as delayed payment charges) on overdue amount for the overdue period. However, in case of receivable from depository, the Company doesn’t have right to charge interest. Though credit period given to customer in respect of receivable from depository is very short, generally there is significant delay in ultimate collection. The Company has computed expected credit loss due to significant delay in collection. Incremental borrowing rate is considered as effective interest rate on these trade receivable for the purpose of computing time value loss.

Receivables from margin trading facility: In accordance with Ind AS 109, the Company applies expected credit loss model (ECL) for measurement and recognition of impairment loss. The expected credit loss is a product of exposure at default (EAD), probability of default (PD) and Loss given default (LGD). The financial assets have been segmented into three stages based on the risk profiles, primarily based on past due. Company has large number of customer base with shared credit risk characteristics. Receivables against margin trading facilities are secured by collaterals. As per policy of the Company, Receivables against Margin trade facilities to the extent not covered by collateral (i.e. unsecured portion) is considered as default and are fully written off as bad debt against respective loan receivables and the amount of loss is recognised in the Statement of Profit and Loss. Subsequent recoveries of amounts previously written off are credited to the Statement of Profit and Loss as bad debts recovered. As per Ind AS 109, the maximum period to consider when measuring expected credit losses is the maximum contractual period (including extension options) over which the entity is exposed to credit risk and not a longer period, even if that longer period is consistent with business practice. Therefore, the maximum period to consider when measuring expected credit losses for these loans is the maximum contractual period (i.e. on demand/one day). ECL is computed assuming that these loans are fully recalled by the Company at each reporting period.

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default in payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

With the applicability of Ind AS 109, the recognition and measurement of impairment of financial assets is based on credit loss assessment by expected credit loss (ECL) model. The ECL assessment involve significant management judgement. The Company’s impairment allowance is derived from estimates including the historical default and loss ratios. Management exercises judgement in determining the quantum of loss based on a range of factors, like staging criteria, calculation of probability of default / loss and consideration of probability weighted scenarios and forward looking macroeconomic factors. The board acknowledges and understands that these factors, since there is a large increase in the data inputs required by the ECL model, which increases the risk of completeness and accuracy of the data that has been used to create assumptions in the model. Based on the internal management analysis, as per Board Opinion, there is no requirement of provision for expected credit loss in several financial assets including the trade receivables and other receivables of the Company and all are on fair value, based on the assessment and judgement made by the board of the company.

Cash and cash equivalents

The company maintains its Cash and cash equivalents and Bank deposits with banks having good reputation, good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company’s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company’s reputation.

The Company uses product-based costing to cost its products and services, which assists it in monitoring cash flow requirements and optimizing its cash return on investments. The Company monitors the level of expected cash inflows on trade and other receivables together with expected cash outflows on trade and other payables.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

iv. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Company’s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk and interest rate risk. Thus, our exposure to market risk is a function of revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Currency risk

The Company is not exposed to any currency risk on account of its borrowings, other payables and receivables in foreign currency. All dealings are done in domestic markets by the company. The functional currency of the Company is Indian Rupee.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing finacial instruments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instruments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

Company’s interest rate risk arises from borrowings and fixed income financial instruments. Borrowings issued at fixed rates exposes to fair value interest rate risk. The interest rate profile of the Company’s interest-bearing financial instruments as reported to the management of the Company is as follows.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

The company does not have any financial assets or financial liabilities bearing floating interest rates. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

NOTE 37: CAPITAL MANAGEMENT

The Company’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The Company monitors capital using a ratio of ‘adjusted net debt’ to ‘adjusted equity’. For this purpose, adjusted net debt is defined as total borrowings, comprising interest-bearing loans and borrowings less cash and cash equivalents. Adjusted equity comprises all components of equity.

Notes :

1. The related party relationship have been determined on the basis of the requirement of the Indian Accounting Standard (Ind AS) - 24 ‘ Related Party Discloures and the same have been relied upon by the auditors.

2. The relationships as mentioned above pertain to those related parties with whom transactions have taken place during the current year/previous year, except where control exists, in which case the relationships have been mentioned irrespective of transactions with the related party.

Directors of the Companies have given personal guarantees towards certain borrowings and cash credit of the Company

Gratuity and Compensated absences are included in managerial remuneration as disclosed above

All transactions with the related parties are priced on an arm’s length prices and resulting outstanding balances

are to be settled in cash on demand. None of the balances are secured.

NOTE 39: CONTINGENT LIABILITIES (TO THE EXTENT NOT PROVIDED FOR) Contingent liabilities (to the extent not provided for)
Contingent liabilities	'' in lakhs
	March 31, 2023	March 31, 2022
Bank Guarantee	21,696.0	10,546.0
Income Tax matters pending with various authorities	611.2	739.5
Service Tax matters (Including GST) pending with various authorities	89.2	64.7
(Merged Entity -Monarch Project & Finmarkets Limited and Monarch Research Brokerge Pvt Ltd)	-
Client Litigation matter	51.0	63.2

Note

(i) There are certain claims aggregating to '' 51.01 lakhs (previous year '' 63.17 lakhs) against the company for which the company has taken suitable legal recourse. Hence the same has not been recognized as a debt and no provision has been made thereof.

(ii) The Company’s pending litigations comprise of claims against the Company primarily by the customers. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial results at March 31, 2023

(iii) Pending resolution of the respective proceedings, it is not practicable for the company to estimate the timing of the cash outflows, if any, in respect of the above as it is determinable only on receipt of judgement/ decisions pending with various forums/authorities.

NOTE 40

The company has taken suitable legal action for recovering deposits of '' 40 lakhs (previous year '' 40 lakhs) for premises at Bangalore and '' 300 lakhs (previous year '' 300 lakhs) for premises at Nariman Point- Mumbai. The management expects favorable order for the same, hence no provisions have been made thereof.

NOTE 41

The company has taken suitable legal action for recovering debts of '' 239 lakhs (previous year '' 239 lakhs) for fraudulent transaction done by client in the year 2008-09. SEBI has passed the interim order withholding the payout which is kept with Bombay Stock Exchange till completion of investigation. The management expects favorable order for the same, hence no provisions have been made thereof.

The Company has an informal process of obtaining confirmations from the vendors to record whether they are covered under Micro, Small and Medium Enterprise Development Act 2006 as well as they have filed required memorandum with prescribed authority. Based on and to the extent of the information received by the Company from the suppliers regarding their status under the Micro, Small and Medium Enterprises Development Act, 2006 (MSMED Act) and relied upon by the auditors, the relevant particulars as at the year end are furnished below:

NOTE 45: PROPOSED DIVIDEND

The Board of Directors, have recommended a Dividend for the financial year ended on 31/03/2023@ 10% (i.e. '' 1/-) per equity share (Previous Year - @ 10%, i.e. '' 1/- per equity share) to the equity shareholders. The Dividend will be paid after the approval of shareholders at ensuing Annual General Meeting. The date of book closure for the entitlement of such dividend and Annual General Meeting shall be decided and informed in due course of time.

NOTE 46: SEGMENT INFORMATION

As per the requirements of Ind AS 108 on "Operating Segments”, segment information has been provided under the Notes to Consolidated Financial Statements.

NOTE 48

The Company has carried out Impairment test on its Fixed Assets as on the date of Balance Sheet and the management is of the opinion that there is no asset for which provision of impairment is required to be made as per applicable Indian Accounting Standard.

NOTE 49

Balance of Receivables and Payables, including Trade Receivables, loans, deposits & advances given as well as taken, payable to vendors, etc, are subject to confirmation and consequent reconciliation and adjustments, if any. Hence, the effect thereof, on Profit/ Loss, Assets and Liabilities, if any, is not ascertainable, which may be considerable. As per the opinion of the Board, there will be no substantial impact on their reconciliation with their balance confirmations as on the reporting date.

NOTE 50

All Property Plant and Equipment were physically verified by the management of the of the company in accordance with a planned program of verifying them once in three years, which is due for verification considering the momement restrictions due to covid pendamic. As per the opinion of the Board, there will be no substantial impact on their reconciliation with their physical verification as on the reporting date.

NOTE 51

In the opinion of the board, the current assets, loans and advances are approximately of the value state, if realized in ordinary course of business. The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

NOTE 52

Events Occurring After the Balance Sheet Date

To the best of knowledge of the management, there are no events occurring after the Balance Sheet date that provide additional information materially affecting the determination of the amounts relating to the conditions existing at the Balance Sheet Date that requires adjustment to the Assets or Liabilities of the Company.

Computation of net profit u/s 198 of the Companies Act, 2013 is not furnished as no commission is payable / paid to the Directors. The reimbursement or payment of expenses as per the contractual appointment, are not in the nature of personal expenses, as the same are accepted/incurred under contractual obligation as per the business practices. Also the expenditure incurred in the normal course of business, in accordance with the generally accepted business practices, on employees and directors, is not considered as expenditure of personal nature. There for the same has not been considered for the above purpose.

NOTE 55

The Company provides for the use by its subsidiaries certain facilities like use of premises infrastructure and other facilities / services and the same are termed as ‘Shared Services’. The cost of such Shared Services are recovered from subsidiaries either on actual basis or on reasonable management estimates which are constantly refined in the light of additional knowledge gained relevant to such estimation.

NOTE 56

Corporate social responsibility

Pursuant to the application of Section 135 of the Act and the Rules framed thereunder, the Company has constituted the CSR committee during the year. The company is required to spend at least two per cent of the average net profits of the company made during the three immediately preceding financial years as per the activities which are specified in Schedule VII of the Act and the Company has decided to spend the amount by way of contribution to a Trust. The disclosure as required by the Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities issued by the Institute of Chartered Accounts of India are as follows:

NOTE 57

Employee Stock Option Plan

The Monarch Networth Capital Limited Employees Stock Options Scheme - 2021 was approved by the Board of Directors and Shareholders of the Company on June 18, 2021 and July 20, 2021 respectively. The Scheme is implemented through a trust route in accordance with SEBI (Share Based Employee Benefits and Sweat Equity) Regulations, 2021 ("SEBI Regulations”) with an objective to motivate, retain and provide additional deferred rewards to the employees who contribute to the growth and profitability of the company and further to create a sense of ownership and participation amongst the employees to share the value they create for the company in the years to come.

Loans and Advances to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013)

The company has granted following loans or advances in the nature of loans which are granted to promoters, directors, KMPs and the related parties (as defined under the Companies Act, 2013), either severally or jointly with any other person that are (a) repayable on demand; or (b) without specifying any terms or period of repayment.

NOTE 61

Revenue from Contract with Customers

The Company derives revenue primarily from the Share Broking Business. Its other major revenue sources are

Portfolio Management Services and Interest Income

Disaggregate revenue information

1. The table below presents disaggregate revenues from contracts with customers for the year ended March 31,

2023 and March 31, 2022. The Company believes that this disaggregation best depicts how the nature, amount,

Timing and uncertainty of revenue and cash flows are affected by market and other economic factors.

Nature of Services

(a) Stock Broking Secrices - Income from services rendered as a broker is recognised upon rendering of the services, in accordance with the terms of contract. This includes Brokerage, Demat Services, Late Payment Charges income & Interest Income from Margin Funding

(b) Other operating revenues - This includes revenue generated from Merchant Banking services, Financial Products Distribution, Financial Advisory Services, etc incurred by the company in the normal course of operations during the year.

3. Nature, Timing of satisfaction of the performance obligation on and significant payment terms.

(i) Income from services rendered as a broker is recognised upon rendering of the services.

(ii) Fees for subscription on based services are received periodically but are recognised as earned on a prorata basis over the term of the contract

(iii) Commissions from distribution of financial products are recognised upon allotment of the securities to the applicant or as the case may be, on issue of the insurance policy to the applicant.

(iv) I nterest is earned on delayed payments from clients and amounts funded to them as well as term deposits with banks.

(v) Interest income is recognised on a time proportion basis taking into account the amount outstanding from customers or on the financial instrument and the rate applicable

(vi) Income from services rendered on behalf of depository is recognised upon rendering of the services, in accordance with the terms of contract.

The above services are point in time in nature, and no performance obligation remains once the transaction is executed. Fees for subscription on based services are received periodically but are recognised as earned on a pro-rata basis over the term of the contract, and are over the period in nature.

NOTE 63

MNCL Capital Compounder Fund

A. Monarch Alternative Investment Fund

Monarch Networth Capital Ltd, being the Investment Manager and Sponsor of Monarch AIF (Alternative Investment Fund) - Category III, a SEBI registered fund as defined under Securities Exchange Board of India (Alternative Investment Funds) Regulations, 2012, has invested a sum of '' 5 Crores in a scheme of Monarch AIF i.e. MNCL CAPITAL COMPOUNDER FUND (‘the Fund’) for a period of 3 years (which can be extended by upto 2 years). MNCL CAPITAL COMPOUNDER FUND is a Category 3 long only AIF Equity fund which is launched by Monarch AIF.

Key Features of the fund are as follows:

0 MNCL Capital Compounder Fund’ is a close ended scheme of the Trust and is offering through a private placement Class A Units, Class B Units, Class C Units and such other Class(es) /Subclass(es) of Units as the Investment Manager may decide from time to time for subscription aggregating to '' 100,00,00,000 (Indian Rupees One Hundred Crores) with a green shoe option of up to '' 50,00,00,000 (Indian Rupees Fifty Crores). The Fund is a scheme of an Indian trust set-up under the Indian Trusts Act, 1882 and is registered with SEBI as a Category III AIF under the Regulations and would be operated in compliance with other Applicable Laws.

0 Sponsor’s Contribution by MNCL : As per the terms of The Sponsor/Investment Manager shall commit an amount equivalent to 5% (five percent) of the Corpus or '' 10,00,00,000 (Rupees Ten Crore), whichever is lower, and shall maintain a continuing interest in the Fund in accordance with the Regulations.

0 ‘ Beacon Trusteeship Limited’ shall act as the Trustee to the Trust. The Trustee shall have all powers in

respect of the property of the Trust, including power to manage the same, which would be delegated to the Investment Manager in terms of the Investment Management Agreement. The Trustee shall not interfere with the actions of the Investment Manager so long as the actions are within the powers of the Investment Manager.

0 Commitment Period : The Commitment Period for the Fund shall commence from the date of execution of Contribution Agreement on 28-09-2020 and shall end on the expiry of 3 (three) months from the Final Closing that may be extended for a further period up to 3 (three) months by the Investment Manager. During which the Capital Commitments can be drawn down upon issuance of a Drawdown Notice to the Contributors.

0 Lock-in Period : Lock-in Period means the period commencing from the date of signing of the respective Contribution Agreement till the expiry of 18 (eighteen) months from the date of last Drawdown or the

date of Final Closing, whichever is later. To clarify, no exit of any Units shall be allowed during the Lock-in Period, except at the discretion of the Investment Manager.

0 Management Fee : Pursuant to the Investment Management Agreement, the Investment Manager will be entitled to receive Management Fee, that will accrue and commence from the date of First Closing and shall be chargeable on annual basis in arrears in respect of Class A Units and Class C Units. The Management Fee shall be charged up to 0.5% (zero point five percent) p.a. on the NAV (calculated at the beginning of each year) of Class A Units and Class C Units. No Management Fee shall be payable with respect to the holders of Class B Units. The Revenue from Management Fees is disclosed under "Note: 20 : Revenue from operations”.

0 Performance Fee : The Investment Manager will establish and maintain an account for the Fund. The Fund’s account will contain separate capital accounts (each a "Capital Account”) in order to separately track the Net Asset Value of each Contributor’s Units in the Fund. The Investment Manager shall charge performance fee ("Performance Fee”) based on the performance of each Capital Account at the rate of 15% (fifteen percent) p.a. of all the profits after deducting Fund Expenses (except Performance Fee), reserves, provisions/withholdings, (in case the profits are higher than the Hurdle Rate of Return) from the holders of Class A Units and Class C Units, on annual basis at the end of financial year or shorter period in certain circumstances as listed out in the Contribution Agreements viz. in case of exit etc. The Performance Fee shall be charged at the end of each year on an annual basis. The Revenue from performance Fees is disclosed under "Note: 20 : Revenue from operations”.

0 Hurdle Rate of Return : The hurdle rate of return shall be the compounded rate of return of an INR based calculation of 10% (pre-Tax) on an annualized basis.

0 Set-up Cost : The Investment Manager will charge one-time Set-up Cost from the holders of Class A Units and Class C Units at actuals subject to a limit of up to 0.5% (zero point five percent) of the aggregate Capital Commitments by the holders of Class A Units and Class C Units. The Investment Manager may, in its discretion reduce/waive the Set-Up Cost payable by an Investor. No Set-up Cost shall be payable with respect to the holders of Class B Units.

5. Monarch Alternative Investment Fund - I

Monarch Networth Capital Ltd, being the Investment Manager and Sponsor of Monarch AIF (Alternative Investment Fund) - Category III, a SEBI registered fund as defined under Securities Exchange Board of India (Alternative Investment Funds) Regulations, 2012, has invested a sum of '' 10 Crores in a scheme of Monarch AIF i.e. MNCL CAPITAL COMPOUNDER FUND - I (‘the Fund’) for a period of 3 years (which can be extended by upto 2 years). MNCL CAPITAL COMPOUNDER FUND - I is a Category 3 long only AIF Equity fund which is launched by Monarch AIF.

Key Features of the fund are as follows:

0 ‘ MNCL Capital Compounder Fund - I’ is the second close ended scheme of the Trust and is offering

through a private placement Class A Units, Class B Units, Class C Units and such other Class(es) / Subclass(es) of Units as the Investment Manager may decide from time to time for subscription aggregating to '' 250,00,00,000 (Indian Rupees Two Hundred Fifty Crores) with a green shoe option of up to '' 200,00,00,000 (Indian Rupees Two Hundred Crores). The Fund is a scheme of an Indian trust set-up under the Indian Trusts Act, 1882 and is registered with SEBI as a Category III AIF under the Regulations and would be operated in compliance with other Applicable Laws.

0 Sponsor’s Contribution by MNCL : As per the terms of The Sponsor/Investment Manager shall commit an amount equivalent to 5% (five percent) of the Corpus or '' 10,00,00,000 (Rupees Ten Crore), whichever is lower, and shall maintain a continuing interest in the Fund in accordance with the Regulations.

0 ‘ Beacon Trusteeship Limited’ shall act as the Trustee to the Trust. The Trustee shall have all powers in

respect of the property of the Trust, including power to manage the same, which would be delegated to the Investment Manager in terms of the Investment Management Agreement. The Trustee shall not interfere with the actions of the Investment Manager so long as the actions are within the powers of the Investment Management Agreement and conform to the Regulations and the objectives of the Trust and the Fund.

0 Commitment Period : The First Closing of the Fund shall be held within a period of 6 (six) months from the date of receipt of confirmation from SEBI for launch of the Fund, subject to the Fund receiving Capital Commitments of at least '' 20,00,00,000 (Indian Rupees Twenty Crores) or any other higher amount as decided by the Investment Manager in accordance with the Regulations. The Investment Manager may extend the First Closing by a period of up to 3 (three) months at its sole discretion.

The Investment Manager has the discretion to hold one or more Subsequent Closings. The Final Closing shall be held on or before the expiry of 12 (twelve) months from the First Closing. The Investment Manager may extend the Final Closing by up to 3 (three) months at its sole discretion, pursuant to which admission of investors as Contributors in the Fund shall stand finalised.

0 Lock-in Period : Units issued to Contributors shall be locked in till the expiry of 18 (Eighteen) months from the date of allotment of Units ("Lock-in Period”). No redemptions will be allowed during the Lock-in Period.

0 Management Fee : Pursuant to the Investment Management Agreement, The Management Fee shall be chargeable at the rate of upto 1% (One Percent) p.a. in respect of Class A Units and Class C Units, payable at the end of each year (or at such intervals as determined by the Investment Manager and as stated in the Contribution Agreement) on the NAV (before taking into account the Fund Expenses, Performance Fees and Tax liabilities) calculated at the start of every year on the relevant Valuation Day. No Management Fee shall be payable with respect to the holders of Class B Units. The Revenue from Management Fees is disclosed under "Note: 20 : Revenue from operations”.

0 Performance Fee : The Investment Manager shall charge a Performance Fee to the holders of Class A Units and Class C Units at the rate of 15% p.a. of the incremental Pre-Tax NAV of Class A Units and Class C Units (over and above the Hurdle Rate of Return) during a Determination Period. The Performance fees will be increased by any applicable GST and other statutory charges payable thereon. This fee will be charged by the Investment Manager directly to the relevant Contributors or to the Fund. The Investment Manager, in its sole discretion, may waive or reduce the Performance Fee for a particular Contributor / Class / Subclass of Units. There shall be no Performance Fee payable with respect to Class B Units. The Revenue from performance Fees is disclosed under "Note: 20 : Revenue from operations”.

•0 Hurdle Rate of Return : The Hurdle Rate of Return applicable to Class A Units and Class C Units shall be 10% (ten percent) in Indian Rupee terms. The Hurdle Rate of Return shall not be applicable with respect to holders of Class B Units.

0 Set-up Cost : The Investment Manager will not charge any Set-up Cost from any unit holders.

NOTE 64

Benami Property held under Prohibition of Benami Property Transactions Act, 1988 and rules made thereunder

The Company do not have any benami property, where any proceeding has been initiated or pending against the company for holding any Benami property.

NOTE 65 Wilful Defaulter

The Company is not declared as wilful defaulter by any bank or financial Institution or other lender.

NOTE 66

Misutilisation of Bank Borrowing

In the opinion of the management of the company, to the best of its knowledge and belief, the company has used the borrowings from banks and financial institutions for the specific purpose for which it was taken at the balance sheet date.

NOTE 67

Disclosure of transactions with struck off companies

The Company did not have any material transactions with companies struck off under Section 248 of the Companies Act, 2013 or Section 560 of Companies Act, 1956 during the financial year.

NOTE 68

Compliance with approved Scheme(s) of Arrangements

No Scheme of Arrangements has been approved by/ pending with the Competent Authority in terms of sections 230 to 237 of the Companies Act, 2013 during the year as well as previous year.

NOTE 69

Undisclosed Income

The Company have not any such transaction which is not recorded in the books of accounts that has been surrendered or disclosed as income during the year in the tax assessments under the Income Tax Act, 1961 (such as, search or survey or any other relevant provisions of the Income Tax Act, 1961).

NOTE 70

Compliance with number of layers of companies

The compliance of number of layers of companies, prescribed under clause (87) of section 2 of the Act read with the Companies (Restriction on number of Layers) Rules, 2017, are not applicable to the company.

NOTE 71

Details of Crypto Currency or Virtual Currency

The Company has not traded or invested in Crypto currency or Virtual Currency during the current financial year and any of the previous financial years.

NOTE 72

Security of current assets against borrowings

Quarterly statements of current assets filed with banks and financial institutions for fund borrowed from those banks and financial institutions on the basis of security of current assets are in agreement with the books of account.

NOTE 73

Utilisation of Borrowed funds and share premium:

(A) During the year, the company has not advanced or loaned or invested funds to any other person(s) or entity(ies), including foreign entities (Intermediaries) with the understanding that the Intermediary shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the company (Ultimate Beneficiaries)

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries

(B) During the year, the Company has not received any fund from any person(s) or entity(ies), including foreign entities (Funding Party) with the understanding (whether recorded in writing or otherwise) that the Company shall:

(i) directly or indirectly lend or invest in other persons or entities identified in any manner whatsoever by or on behalf of the Funding Party(Ultimate Beneficiaries)

(ii) provide any guarantee, security or the like to or on behalf of the Ultimate Beneficiaries NOTE 74

Registration of charges or satisfaction of charges with Registrar of Companies (ROC)

The Company do not have any charges or satisfaction of charges which is yet to be registered with ROC during the Financial Year, except

0 During earlier years, the company has availed credit facilities from State Bank of Saurashtra, (now State Bank of India), which has been fully repaid in earlier years. However, the said charge against the Charge ID-10081290 is still disclosed as Open Charge in the records of Registrar of Companies (ROC). The management of the company is in the process of filing of satisfaction of the said charge with ROC, Although it is only a procedural requirement, since the said loan is already fully repaid.

NOTE 75

Ratios

Additional regulatory information required under (WB)(xvi) of Division III of Schedule III amendment, disclosure of rations, is not applicable to the Company as it is in broking business and not an NBFC registered under Section 45-IA of Reserve Bank of India Act, 1934.

NOTE 78

These financial statements are presented in Indian Rupees (INR), which is also its functional currency and all values are rounded to the nearest lakhs, except when otherwise indicated. The amounts which are less than '' 0.01 lakhs are shown as '' 0.00 lakhs.

NOTE 79

Previous year’s figures have been regrouped or reclassifed wherever necessary.

---

Mar 31, 2018

1. A. Company Information

Monarch Networth Capital Limited (MNCL) was originally formed under the name of “Networth Finance Limited on 2nd December 1993. Therafter, it was changed to Networth Stock Broking Limited w.e.f. 30/09/1997 and to Monarch Networth Capital Limited w.e.f 13/10/2015. MNCL is predominantly engaged in Share & Stock Broking, Merchant Banking, and Mutual Fund Distributor. The Company is a member of National Stock Exchange of India Ltd. (NSE) BSE Ltd. (BSE), Metropolitan Stock Exchange of India Ltd (MSEI) in the Capital Market and Derivatives (Futures & Options) Segment. It is also Depository Participant with Central Depositary Services India (CDSL) and National Securities Depository (India) Limited (NSDL) and also registered in Securities and Exchange Board of India (“SEBI”) as a Category 1 Merchant Banker and Research Analyst.

The Company has availed the deemed cost exemption in relation to the property plant and equipment on the date of transition and hence the net block carrying amount has been considered as the gross block carrying amount on that date.

Refer note below for the gross block value and the accumulated depreciation on 1 April 2016 under the previous GAAP.

The Company has availed the deemed cost exemption in relation to the intangible assets on the date of transition and hence the net block carrying amount has been considered as the gross block carrying amount on that date.

Refer note below for the gross block value and the accumulated amortisation on 1 April 2016 under the previous GAAP.

* Stock in trade represents shares held as on balance sheet date at valued at cost being shares held by virtue of acting as a merchant banker and market maker for the acquired equity shares. Balance in vandha & trading error A/c. are basically shares held as a result of Trading Error or Vandha Accounts of clients. In absence of information, disclosure relating quantity has not been given.

Note : As on 01.04.2016, there was a Provision for Doubtful Receivables for Rs 6,72,87,557/-. A further provision of Rs 100,00,000/- was made during the Financial Year 2016-2017 . The Board is of the opinion that inspite of all due efforts, the said Doubtful Receivables for Rs 7,72,87,557/-are not recoverable, hence the same has been written off during the Financial Year 2016-2017.

Note : As per management opinion there is no Expected Credit Loss in Trade Receivables of the Company and all are on fair value.

Notes:

1. Fixed deposits includes Rs. 15,97,30,335, Rs. 15,67,57,488, Rs. 7,87,50,000 for the year ended 31 March 2018, 31 March 2017 and 1 April 2016, respectively, under lien with banks towards bank guarantee, or kept as security with Exchanges as margin money.

2. Cash and Bank balances as on 31 March 2018, 31 March 2017 and as on 1 April 2016 include cheques on hands, which were cleared subsequent to the year end on periodic basis.

d Terms / Rights attached to Equity shares

“The Company has only one class of equity shares with voting rights having a par value of Re 10 per share. Each holder of equity shares is entitled to one vote per share. The Company declares and pays dividends in Indian Rupees. The dividend proposed by the Board of Directors is subject to the approval of the shareholders at the ensuing Annual General Meeting, except in case of interim dividend. During the year ended 31 March 2018, the amount of dividend per equity share recognised as distributions to equity shareholders is NIL (previous year NIL).

In the event of liquidation of the Company, the shareholders of equity shares will be entitled to receive remaining assets of the Company after distribution of all preferential amounts. The distribution will be in proportion to the number of equity shares held by the shareholders.

f The company had not issued any bonus share for consideration other than cash and no share had bought back during the period of five years immediately preceding the reporting date.

g During the year no share was reserved for issue under options and contracts/commitments for the sale of shares/disinvestment.

Notes:

In absence of information regarding vendors covered under Micro, Small & Medium Enterprises Development Act, 2006. disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act has not been given.

** This represents recovery of expenses in agreed proportion towards utilization of common facilities including staff cost from subsidiaries and associate concerns.

Note:2 Corporate social responsibility

Pursuant to the application of Section 135 of the Act and the Rules framed thereunder, the Company has constituted the CSR committee during the year. The company is required to spend at least two per cent of the average net profits of the company made during the three immediately preceding financial years as per the activities which are specified in Schedule VII of the Act and the Company has decided to spend the amount by way of contribution to a Trust . The disclosure as required by the Guidance Note on Accounting for Expenditure on Corporate Social Responsibility Activities issued by the Institute of Chartered Accounts of India are as follows:

- Gross amount required to be spent by the Company during the year is Rs. 20,01,782/

- Amount Spent during the year - Rs. Nil"

Note: 3 Earnings per share (EPS)

Basic EPS amounts are calculated by dividing the profit for the year attributable to equity holders by the weighted average number of Equity shares outstanding during the year.

Diluted EPS amounts are calculated by dividing the profit attributable to equity holders (after adjusting for interest on the convertible preference shares) by the weighted average number of Equity shares outstanding during the year plus the weighted average number of Equity shares that would be issued on conversion of all the dilutive potential Equity shares into Equity shares. “

The company offsets tax assets and liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same tax authority.

Significant management judgement is required in determining provision for income tax, deferred income tax assets and liabilities and recoverability of deferred income tax assets. The recoverability of deferred income tax assets is based on estimates of taxable income by each jurisdiction in which the relevant entity operates and the period over which deferred income tax assets will be recovered.

Note: 4 Employee benefit expense

The Company contributes to the following post-employment defined benefit plans in India.

(i) Defined Contribution Plans:

The contributions payable to these plans by the Company are at rates specified in the rules of the schemes.

The Company recognised following amounts for provident fund and ESIC contributions in the Statement of Profit and Loss.

(ii) Defined Benefit Plan:

A) The Company makes annual contributions to the Group Gratuity cum Life Assurance Schemes administered by the LIC of India, a funded defined benefit plan for qualifying employees. The scheme provides for payment as under:

“i) On normal retirement / early retirement / withdrawal / resignation:

As per the provisions of the Payment of Gratuity Act, 1972 with vesting period of 5 years of service.

ii) On death in service:

As per the provisions of the Payment of Gratuity Act, 1972 without any vesting period.”

The most recent actuarial valuation of plan assets and the present value of the defined benefit obligation for gratuity were carried out as at 31 March 2017. The present value of the defined benefit obligations and the related current service cost and past service cost, were measured using the Projected Unit Credit Method.

Assumptions regarding future mortality have been based on published statistics and mortality tables. The current longevities underlying the values of the defined benefit obligation at the reporting date were as follows:

ii. Sensitivity analysis

Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions, holding other assumptions constant, would have affected the defined benefit obligation by the amounts shown below.

Although the analysis does not take account of the full distribution of cash flows expected under the plan, it does provide an approximation of the sensitivity of the assumptions shown.

Note: 5 Leases- Operating leases

Leases as lessee

a) The Company has entered into cancellable operating leasing arrangements for residential and office premises. Following Lease rentals has been included under the head “Other Expenses” under Note No 25 in the notes to the financial statements.”

Note: 6 Fair value disclosures

1. Financial instruments - Fair values and risk management

A. Accounting classification and fair values

The following table shows the carrying amounts and fair values of financial assets and financial liabilities, including their levels in the fair value hierarchy. It does not include fair value information for financial assets and financial liabilities not measured at fair value if the carrying amount is a reasonable approximation of fair value.

“(1) Assets that are not financial assets, in the opinion of the management are not included.

(2) Other liabilities that are not financial liabilities, in the opinion of the management are not included.

(3) In the opinion of the management, based on the details available with the company, all the financial assets and liabilities are tested for valuation, to identify their fair value, as prescribed in Indian Accounting Standards, and are measured at fair value, to the extent possible. The assets/ liabilities, which are not possible to be measured at fair value, in the opinion of the management, in the opinion of the management, are presented in the financial statements at their book value, without any adjustment towards fair valuation.”

B. Measurement of fair values (Key inputs for valuation techniques) :

1. Listed Equity Investments (other than Subsidiaries, Joint Ventures and Associates): Quoted Bid Price on Stock Exchange (Level 1)

2. Forward contracts : Forward exchange rate is taken from Foreign Exchange Dealers Association of India (FEDAI) (Level 1)

3. Valuation techniques and significant unobservable inputs: Not applicable (Level 3)

Transfers between Levels 1 and 2

There were no transfer from Level 1 to Level 2 or vice versa in any of the reporting periods.

C. Financial risk management

The Company has exposure to the following risks arising from financial instruments:

- Credit risk ;

- Liquidity risk ; and

- Market risk

i. Risk management framework

The Company''s board of directors has overall responsibility for the establishment and oversight of the Company''s risk management framework.

The Company''s risk management policies are established to identify and analyse the risks faced by the Company, to set appropriate risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Company''s activities. The Company, through its training and management standards and procedures, aims to maintain a disciplined and constructive control environment in which all employees understand their roles and obligations.

The audit committee oversees how management monitors compliance with the company''s risk management policies and procedures, and reviews the adequacy of the risk management framework in relation to the risks faced by the Company. The audit committee is assisted in its oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk management controls and procedures, the results of which are reported to the audit committee.

ii. Credit risk

Credit risk is the risk of financial loss to the Company if a customer or counterparty to a financial instrument fails to meet its contractual obligations, and arises principally from the Company''s receivables from customers and investments in debt securities.

The carrying amount of following financial assets represents the maximum credit exposure:

The Company does not have higher concentration of credit risks to a single customer.

The Company''s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However, management also considers the factors that may influence the credit risk of its customer base, including the default risk of the industry and country in which customers operate.

The Board of Directors has established a credit policy under which each new customer is analysed individually for creditworthiness before the Company''s standard payment and delivery terms and conditions are offered. The Company''s review includes external ratings, if they are available, and in some cases bank references. Sale limits are established for each customer and reviewed half yearly. Any sales exceeding those limits require approval from the Board of Directors.

As per simplified approach, the Company makes provision of expected credit losses on trade receivables using a provision matrix to mitigate the risk of default in payments and makes appropriate provision at each reporting date wherever outstanding is for longer period and involves higher risk.

Management believes that the unimpaired amounts that are past due by more than 90 days are still collectible in full, based on historical payment behaviour and extensive analysis of customer credit risk, including underlying customers'' credit ratings if they are available.

Cash and cash equivalents

The company maintains its Cash and cash equivalents and Bank deposits with banks having good reputation, good past track record and high quality credit rating and also reviews their credit-worthiness on an on-going basis.

iii. Liquidity risk

Liquidity risk is the risk that the Company will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Company''s approach to managing liquidity is to ensure, as far as possible, that it will have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Company''s reputation.

The Company uses product-based costing to cost its products and services, which assists it in monitoring cash flow requirements and optimizing its cash return on investments. The Company monitors the level of expected cash inflows on trade and other receivables together with expected cash outflows on trade and other payables.

Exposure to liquidity risk

The following are the remaining contractual maturities of financial liabilities at the reporting date. The amounts are gross and undiscounted, and include estimated interest payments and exclude the impact of netting agreements.

iv. Market risk

Market risk is the risk that changes in market prices - such as foreign exchange rates and interest rates - will affect the Company''s income or the value of its holdings of financial instruments. Market risk is attributable to all market risk sensitive financial instruments including foreign currency receivables and payables and long term debt. We are exposed to market risk primarily related to foreign exchange rate risk and interest rate risk. Thus, our exposure to market risk is a function of revenue generating and operating activities in foreign currency. The objective of market risk management is to avoid excessive exposure in our foreign currency revenues and costs.

Currency risk

The Company is not exposed to any currency risk on account of its borrowings, other payables and receivables in foreign currency. All dealings are done in domestic markets by the company. The functional currency of the Company is Indian Rupee.

Interest rate risk

Interest rate risk can be either fair value interest rate risk or cash flow interest rate risk. Fair value interest rate risk is the risk of changes in fair values of fixed interest bearing financial instruments because of fluctuations in the interest rates. Cash flow interest rate risk is the risk that the future cash flows of floating interest bearing financial instruments will fluctuate because of fluctuations in the interest rates.

Exposure to interest rate risk

Company''s interest rate risk arises from borrowings and fixed income financial instruments. Borrowings issued at fixed rates exposes to fair value interest rate risk. The interest rate profile of the Company''s interest-bearing financial instruments as reported to the management of the Company is as follows.

Fair value sensitivity analysis for fixed-rate instruments

The Company does not account for any fixed-rate financial assets or financial liabilities at fair value through profit or loss. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Cash flow sensitivity analysis for variable-rate instruments

The company does not have any financial assets or financial liabilities bearing floating interest rates. Therefore, a change in interest rates at the reporting date would not affect profit or loss.

Note 7 Capital Management

The Company''s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence and to sustain future development of the business.

The Company monitors capital using a ratio of ''adjusted net debt'' to ''adjusted equity''. For this purpose, adjusted net debt is defined as total borrowings, comprising interest-bearing loans and borrowings less cash and cash equivalents. Adjusted equity comprises all components of equity.

Notes

(i) There are certain claims aggregating to Rs. 318 lacs (previous year Rs. 318 lacs) against the company for which the company has taken suitable legal recourse. Hence the same has not been recognized as a debt and no provision has been made thereof.

(ii) The Company''s pending litigations comprise of claims against the Company primarily by the customers. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial results at March 31, 2018

(iii) Pending resolution of the respective proceedings, it is not practicable for the company to estimate the timing of the cash outflows, if any, in respect of the above as it is determinable only on receipt of judgement/decisions pending with various forums/authorities.

Note 8

Disclosure on specified bank notes (SBN)

During the previous year, the company deposited specified bank notes (SBN) with the bank between November 8, 2016 to December 30, 2016. The amount so deposited consisted of currency note denominations of INR 1000 and INR 500 as defined in the MCA notification G.S.R 308 (E) dated MARCH 30, 2017 on the details of the SBN held and transacted during the period from November 8, 2016 to December 30, 2016.:

Note 9

Dividends proposed to be distributed for the equity shareholders for the year ended 2017-18 is Nil.

Note 10

Segment information

As per the requirements of Ind AS 108 on “Operating Segments”, segment information has been provided under the Notes to Consolidated Financial Statements.

The Company has carried out Impairment test on its Fixed Assets as on the date of Balance Sheet and the management is of the opinion that there is no asset for which provision of impairment is required to be made as per applicable Indian Accounting Standard.

Note 11

Balance of all Sundry Debtors, Sundry Creditors, Investments & Loan and Advances are subject to confirmation and consequent reconciliation and adjustments, if any.

Note 12

In the opinion of the board, the current assets, loans and advances are approximately of the value state, if realized in ordinary course of business. The provision for depreciation and for all known liabilities is adequate and not in excess of the amount reasonably necessary.

Note 13

The company has taken suitable legal action for recovering deposits of Rs. 40 lacs (previous year Rs. 40 lacs) for premises at Bangalore. The management expects favorable order for the same, hence no provisions have been made thereof.

Note 14

The company has taken suitable legal action for recovering debts of Rs. 239 lacs (previous year Rs. 239 lacs) for fraudulent transaction done by client in the year 2008-09. SEBI has passed the interim order withholding the payout which is kept with Bombay Stock Exchange till completion of investigation. The management expects favorable order for the same, hence no provisions have been made thereof.

Note 15

Events Occurring After the Balance Sheet Date

To the best of knowledge of the management, there are no events occurring after the Balance Sheet date that provide additional information materially affecting the determination of the amounts relating to the conditions existing at the Balance Sheet Date that requires adjustment to the Assets or Liabilities of the Company.

Computation of net profit u/s 198 of the Companies Act, 2013 is not furnished as no commission is payable / paid to the Directors. The reimbursement or payment of expenses as per the contractual appointment, are not in the nature of personal expenses, as the same are accepted/incurred under contractual obligation as per the business practices. Also the expenditure incurred in the normal course of business, in accordance with the generally accepted business practices, on employees and directors, is not considered as expenditure of personal nature. There for the same has not been considered for the above purpose.

Note 16

The Company provides for the use by its subsidiaries certain facilities like use of premises infrastructure and other facilities / services and the same are termed as ''Shared Services''. The cost of such Shared Services are recovered from subsidiaries either on actual basis or on reasonable management estimates which are constantly refined in the light of additional knowledge gained relevant to such estimation.

Note 17

Transition to Ind AS:

For the purposes of reporting, company have transitioned its basis of accounting from Indian generally accepted accounting principles (“IGAAP”) to Ind AS. The accounting policies set out in note 1 have been applied in preparing the financial statements for the year ended 31 March 2018, the comparative information presented in these financial statements for the year ended 31 March 2017 and in the preparation of an opening Ind AS balance sheet at 1 April 2016 (the “transition date”).

In preparing opening Ind AS balance sheet, company have adjusted amounts reported in financial statements prepared in accordance with IGAAP. An explanation of how the transition from IGAAP to Ind AS has affected our financial performance, cash flows and financial position is set out in the following tables and the notes that accompany the tables. On transition, we did not revise estimates previously made under IGAAP except where required by Ind AS.”

Notes to the reconciliation:

1 Remeasurement of Post-employment benefit obligations (Net of Tax)

Both under previous GAAP and Ind AS, the Company recognised costs related to its post-employment defined benefit plan on an actuarial basis.

Under Ind AS, remeasurements [comprising of actuarial gains and losses, the effect of the asset ceiling, excluding amounts included in net interest on the net defined benefit liability and the return on plan assets excluding amounts included in net interest on the net defined benefit liability] are recognised to retained earnings through OCI.

Under the previous GAAP, these remeasurements were forming part of the profit or loss for the year. There is no impact on the total equity as at 31 March 2017

2 Fair valuation of investments

Under the previous GAAP, investments in equity instruments & securities were classified as long-term investments or current investments based on the intended holding period and realisability. Long-term investments were carried at cost less provision for impairment towards other than temporary decline in the value of such investments. Current investments were carried at lower of cost and fair value.

Under Ind AS, such investments are carried at fair value through profit or loss (FVTPL) or fair value through other comprehensive income (FVOCI) (except for investment in subsidiaries, associates and joint ventures).

The resulting fair value changes of these investments (other than equity instruments designated as at FVOCI) have been recognised in retained earnings as at the date of transition and subsequently in the profit or loss. Fair value changes with respect to investments in equity instruments designated as at FVOCI have been recognised in FVOCI - Equity investments reserve as at the date of transition and subsequently in the other comprehensive income.”

3 Deferred Tax

Previous GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period.

Ind AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base.

The application of Ind AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under previous GAAP. In addition, the various transitional adjustments lead to temporary differences.

Deferred tax adjustments are recognised in correlation to the underlying transaction either in retained earnings or a separate component of equity.

4 Property, plant and equipment

Under Ind AS, the Company has elected to apply Ind AS 16-Property, plant and equipment from the date of acquisition of property, plant and equipment and accordingly depreciation has been retrospectively calculated and the resultant change has been adjusted in retained earnings.

5 Other comprehensive income

Under Ind AS, all items of income and expense recognized in a period should be included in profit or loss for the period, unless a standard requires or permits otherwise.

Items of income and expense that are not recognized in profit or loss but are shown in the statement of profit and loss as ''other comprehensive income'' includes

- re-measurements of defined benefit plans,

- effective portion of gain or loss on cash flow hedging instruments,

- fair value gain or loss on FVOCI equity instruments and

- their corresponding income tax effects.

The concept of other comprehensive income did not exist under previous GAAP.

6 Tax impact on adjustments

Retained earnings and statement of profit and loss has been adjusted consequent to the Ind AS transition adjustments with corresponding impact to deferred tax, wherever applicable.

7 Re-Classifications

The Company has done the following reclassifications as per the requirements of Ind-AS :

i) Assets / liabilities which do not meet the definition of financial asset / financial liability have been reclassified to other asset / liability.

ii) Under previous GAAP, Live Stock were presented under Property, Plant & Equipment being measured at cost.Under IND AS the same have been reclassified from Property, Plant & Equipment to Biological Assets other than bearer plants and measured at fair value less cost to sale.

8 Reconciliation of Cash Flow Statement

The IND AS adjustments are either non cash adjustments or are regrouping among the cash flows from operating, investing and financing activities.

Consequently, IND AS adoption has no impact on the net cash flow for the year ended 31st March, 2017 as compared with the previous GAAP.

9 Other GAAP adjustments

Other GAAP adjustments include adjustment related to remeasurement and recognition of certain assets and liabilities in accordance with Ind AS which are not material in nature.

11 Deferred tax assets (net) :

Indian GAAP requires deferred tax accounting using the income statement approach, which focuses on differences between taxable profits and accounting profits for the period. Ind-AS 12 requires entities to account for deferred taxes using the balance sheet approach, which focuses on temporary differences between the carrying amount of an asset or liability in the balance sheet and its tax base. The application of Ind-AS 12 approach has resulted in recognition of deferred tax on new temporary differences which was not required under Indian GAAP.

Note: 18 Previous year''s figures have been regrouped or reclassified wherever necessary.

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Mar 31, 2016

c. Terms / Rights attached to equity shares

The company has only one class of equity shares having par value of '' 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees.

During the year ended March 31, 2016 the company had not declared any dividend ( Previous Year Nil ).

d. During the year no share was reserved for issue under options and contracts/commitments for the sale of shares/ disinvestment.

f. The company had not issued any bonus share for consideration other than cash and no share had bought back during the period of five years immediately preceding the reporting date.

Note: Aforesaid loan is classified as Long Term Borrowing to the extent to which it is not in current nature i.e. which are due to be settled after 12 months and current maturities of the long term borrowings is classified as other current liabilities.

* Stock in trade represents shares held as on balance sheet date at valued at cost being shares held by virtue of acting as a merchant banker and market maker for the acquired equity shares. Balance in vandha & trading error A/c. are basically shares held as a result of Trading Error or Vandha Accounts of clients. In absence of information, disclosure relating quantity has not been given.

Computation of net profit u/s 198 of the Companies Act, 2013 is not furnished as no commission is payable / paid to the Directors. The reimbursement or payment of expenses as per the contractual appointment, are not in the nature of personal expenses, as the same are accepted/incurred under contractual obligation as per the business practices. Also the expenditure incurred in the normal course of business, in accordance with the generally accepted business practices, on employees and directors, is not considered as expenditure of personal nature. There for the same has not been considered for the above purpose.

Note 1.Scheme of Amalgamation

The scheme of Amalgamation between Monarch Research and Brokerage Private Limited (‘MRBPL'') and Monarch Net worth Capital Limited (erstwhile Net worth Stock Broking Limited) was approved by the Hon''ble High Court of Gujarat on May 03, 2013 and the scheme of Amalgamation between Monarch Projects and Fin markets Limited (MPFL) and Monarch Net worth Capital Limited (erstwhile Net worth Stock Broking Limited) was approved by the Hon''ble High Court Mumbai on August 07, 2014.

Pursuant to the scheme of Amalgamation between Monarch Research and Brokerage Private Limited (‘MRBPL'') and Monarch Projects and Fin markets Limited (MPFL) with Monarch Net worth Capital Limited (erstwhile Net worth Stock Broking Limited), the assets and liabilities of the erstwhile transferor companies was transferred to and vested in the company with effect from the 1st April, 2010 being the appointed date, the scheme has been given effect to these accounts in respective financial year.

As per the Scheme of Amalgamation the Company was required to issue 1,90,80,000 equity shares of face value of Rs 10/- per share aggregating Rs 19,08,00,000/- to the shareholders of the erstwhile Transferor Companies MRBPL and MPFL. The Company has allotted 1,90,80,000 equity shares aggregating to Rs 19,08,00,000/- to the shareholders of the erstwhile MRBPL and MPFL on October 27, 2014.

(b) Method of accounting used to reflect the amalgamation The Pooling of Interests Method

(c) Particulars of the scheme sanctioned under a statute

(d) The scheme has envisaged an exchange ratio as under:

- MPFL - 201 (Two Hundred and One) Equity Shares of Rs. 10/- each of MNCL for every 100 (One Hundred) Equity Share of Rs.10/- each held in MPFL.

- MRBPL - 100 (One Hundred) Equity Shares of Rs. 10/- each of MNCL for every 100 (One Hundred) Equity Share of Rs.10/- each held in MRBPL.

Note : 2. ACCOUNTING TREATMENT ON AMALGAMATION

The accounting for Amalgamation has been done in accordance to the approved Scheme of Amalgamation clause no 14 -“Accounting Treatment”. Accordingly, the Company has accounted for the Scheme in its book of Accounts as under:

1. The reserves in the books of account of the Transferor Companies have been credited by the Transferee Company to its reserves in the same form in which they appear in the books of the Transferor Companies.

2. The amount lying to the balance of “Profit and Loss Account” in the books of account of the Transferor Companies has been adjusted by the Transferee Company to its Profit and Loss Account.

3. The Excess amount of Rs 3,31,91,490/- resulting on account of amalgamation has been transferred to “Amalgamation Reserve Account”. The said account has not been considered as a free reserve as provided u/s 2(29A) of the Companies Act, 1956 as directed by the Honorable Hight Court, Mumbai.

4. As per the Scheme of Amalgamation the Company was required to issue 1,90,80,000 equity shares of face value of Rs 10/- per share aggregating Rs 19,08,00,000/- to the shareholders of the erstwhile Transferor Companies MRBPL and MPFL. The Company has allotted 1,90,80,000 equity shares aggregating to Rs 19,08,00,000/- to the shareholders of the erstwhile MRBPL and MPFL on October 27, 2014.

5. The difference between the book value of net assets taken over and the value of shares issued after accounting for the cancellation if any have been adjusted to the Securities Premium Account.

6. The application and reduction of the Share Premium Account has been effected as an integral part of the Scheme without having to follow the process under the provisions of Section 78 and Section 100, 102 and 103 of the Act. Such application/ reduction of the Share Premium account does not involve either diminution of liability in respect of unpaid share capital or payment to any shareholder of any paid up share capital. The order of the Court sanctioning the Scheme under Section 394 of the Act is deemed to be an order under Section 102 of the Act confirming the reduction and the compliance by the Transferee Company of the provisions of Section 391-394 of the Act shall be deemed to be the sufficient compliance of the provisions of Section 100 to 103 of the Companies Act, 1956, rule 85 of the Companies (Court) Rules, 1959, and other applicable provisions, if any, relating to the reduction of share capital.

Note 7 The Company provides for the use by its subsidiaries certain facilities like use of premises infrastructure and other facilities / services and the same are termed as ‘Shared Services''. The cost of such Shared Services are recovered from subsidiaries either on actual basis or on reasonable management estimates which are constantly refined in the light of additional knowledge gained relevant to such estimation.

Note 8 Contingent Liability & Commitments (to the extent not provided for)

The management of the Company does not anticipate any contingent liability having material effect on the position stated in the Balance Sheet at the yearend except as stated below:

a. There are certain claims aggregating to Rs, 318 lacs (previous year Rs,318 lacs) against the company for which the company has taken suitable legal recourse. Hence the same has not been recognized as a debt and no provision has been made thereof.

b. The company has given guarantee of Rs, 20 crores for loan taken by its Subsidiary Company Ravisha Financial Services Private Limited from financial institutions.

c. The company has given guarantee of Rs, 4 crores for loan taken by its Subsidiary Company Net worth Commodities & Investments Limited from Bank.

c. Contingent Liabilities of erstwhile Transferor companies:

MRBPL

a. Bank Gurantee : NIL

b. The Commissioner of Service tax, Ahmadabad has issued show cause for claiming wrong exemption/exclusion of NSE/BSE transaction charges ,SEBI fees etc. .The total demand for the said show cause notice is Rs, 6,76,405/- No liability has been provided as the liabilities is contingent in nature.

c. The Assistant Commissioner of Income Tax ,Ahmadabad has issued order dated 13/03/2013,disallowed Bad Debts of Rs, 3,80,037/- for A. Y. 2009-10. The total demand for the said order u/s 143(3) is Rs, 1,37,444/- and the company has filed appealed against the said order. no liabilities has been provided as the liabilities is contingent in nature

d. The Assistant Commissioner of Income Tax ,Ahmadabad has issued order dated 21/12/2011,disallowed Bad Debts of Rs,

11,27,093/- for A. Y. 2010-11. The total demand for the said order u/s 143(3) is Rs, 45,500/-And the assessed has filed appealed against the said order. no liabilities has been provided as the liabilities is contingent in nature.

e. The Company''s pending litigations comprise of claims against the Company primarily by the customers. The Company has reviewed all its pending litigations and proceedings and has adequately provided for where provisions are required and disclosed the contingent liabilities where applicable, in its financial statements. The Company does not expect the outcome of these proceedings to have a material adverse effect on its financial results at March 31, 2016.

Note 9 Related Party Disclosure of NSBL

(a) List of Related Parties and Relationship

NAME OF THE RELATED PARTY NATURE OF RELATIONSHIP

Net worth Commodities & Investments Ltd. Subsidiary Company

Monarch Insurance Broking Private Limited Subsidiary Company

Net worth Wealth Solutions Ltd. 100% Subsidiary Company

Ravisha Financial Services Private Ltd. 100% Subsidiary Company

Net worth Insurance Broking Private Ltd. 100% Subsidiary Company

Net worth Softtech Ltd Associate Concern

Net worth Financial Services Ltd. Associate Concern Key Management Personnel

Mr. Vaibhav Shah Managing Director cum Chairman (Chairman w.e.f. 12th

February, 2016)

Mrs. Manju Bafna Executive Director Others

Mr. Suresh Pukhraj Jain Chairman (upto 12th February, 2016) & Dominant Promoter

Group

Mrs. Kanta Jain Dominant Promoter Group

S.P. Jain - HUF Enterprises over which Director/ Key Managerial Personnel/

Sun Capital Advisory Services Private Limited DPG are able to exercise significant influence

Mrs. Kinnari Shah Dominant Promoter Group

Mr. Bankim Shah Dominant Promoter Group

Mr. Himanshu Shah Dominant Promoter Group

Mr. Suresh Bafna Dominant Promoter Group

Premjayanti Properties- Partnership Firm Enterprises over which Director/ Key Managerial Personnel/

(Mr. Vaibhav Shah & Mr. Himanshu Shah- being Partners) DPG are able to exercise significant influence

Premjayanti Enterprises Private Limited Enterprises over which Director/ Key Managerial Personnel/

DPG are able to exercise significant influence

Monarch Comtrade Private Limited Enterprises over which Director/ Key Managerial Personnel/

DPG are able to exercise significant influence

Monarch Infraparks Private Limited Enterprises over which Director/ Key Managerial Personnel/

DPG are able to exercise significant influence

Sur-Man Investment Limited Enterprises over which Director/ Key Managerial Personnel/

DPG are able to exercise significant influence

Simandhar Securities Private Limited Enterprises over which Director/ Key Managerial Personnel/

DPG are able to exercise significant influence

Samarpan Properties Private Limited Enterprises over which Director/ Key Managerial Personnel/

DPG are able to exercise significant influence

Note: Where, CY= Current year''s figures & PY= Previous year''s figures

Note 10. The company has taken suitable legal action for recovering deposits of Rs, 40 lacs (previous year Rs, 40 lacs) for premises at Bangalore. The management expects favorable order for the same, hence no provisions have been made thereof.

Note 11. The company has taken suitable legal action for recovering debts of Rs, 239 lacs (previous year Rs, 239 lacs) for fraudulent transaction done by client in the year 2008-09. SEBI has passed the interim order withholding the payout which is kept with Bombay Stock Exchange till completion of investigation. The management expects favorable order for the same, hence no provisions have been made thereof.

Note 12. In the opinion of the Directors of the Company, the Current Assets and loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which items are stated in the Balance Sheet.

Note 13. There are no Capital commitments which is outstanding as on Balance Sheet date (previous year Nil).

Note 14. Events Occurring After the Balance Sheet Date

To the best of knowledge of the management, apart from the Accounting for Scheme of Amalgamation there are no events occurring after the Balance Sheet date that provide additional information materially affecting the determination of the amounts relating to the conditions existing at the Balance Sheet Date that requires adjustment to the Assets or Liabilities of the Company.

Note 41 Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

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Mar 31, 2015

1. CORPORATE INFORMATION

Networth Stock Broking Limited (’the company’) has emerged as a leading provider of financial sevices and information provider primarily to Instititional and Retail clients in India for more than a decade.The company is a member of the National Stock Exchange of India Ltd. (NSE) Metropolitan Stock Exchange of India Limited (formerly know n as MCX-Stock Exchange Limited) and BSE Ltd. (BSE) in the Capital Market and Derivatives (Futures & Options) segment. It is Depositary Participant with Central Depository Services India (CDSL) and National Securities Depository (India) Limited (NSDL). The company also provides Merchant Banking and Market Maker Services.

Pursuant to the scheme of Amalgamation approved by the Hon’ble High Court of Gujarat on May 03, 2013 for Monarch Research and Brokerage Private Limited (’MRBPL’) and susequently by the Hon’ble High Court Mumbai on August 07, 2014, for Monarch Project and Finmarkets Limited (’MPFL’), MRBPL and MPFL have been amalgamated with the company from the appointed date i.e. 1st April, 2010. The scheme of amalgamation became effective as on October 15, 2014. The Amalgamation has enabled appropriate consolidation of the activities of NSBL, MRBPL and MPFL, with pooling and more efficient utilization of resources, greater economies of scale, reduction in overheads and expenses and improvement in various operating parameters.

Pursuant to the Scheme of amalagamation al the assets and liabilities of the Transferor companies has been vested in the Company which includes Security Deposits as Member of various Exchanges under various segments, Intermediaries and Secured Term liabilities etc. The Company is in the process of initiating the Scheme of Amalgamation for transfering all assets/ liabilities in the name of the Company which are presently in the name of the respective Transferor Companies.

2. Terms / Rights attached to equity shares

The company has only one class of equity shares having par value of ' 10/- per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees

During the year ended March 31St, 2015 the company had not declared any dividend (Previous Year Nil)

3. During the year no share was reserved for issue under options and contracts/commitments for the sale of shares / disinvestment.1,90,80,000 Equity shares of Rs. 10/- each were issued and allotted to the shareholders of the transferor companies during the year on the basis of consideration other than cash pursuant to the scheme of Amalgamation between the Monarch Research and Brokerage Private Limited (MRBPL) and Monarch Project and Finmarkets Limited (MPFL) (Transferor Companies) with the Company (Transferee Company) as approved by the Hon'ble High Court of Gujarat vide its order dated 3rdMay, 2013 & by the Hon'ble High Court of Bombay vide its order dated 07th August, 2014.

** The Company s has provided in its Statement of Profit and Loss the Provision for Taxation at Rs. 1,16,80,000. However, the actual tax liability of the Company for the year as computed in accordance “with the Accounting Standard-22 (AS-22) works out to Nil. This consti- tutes a departure from the requirements of the said AS-22. As a result of the above, the tax expense for the year has been provided in excess by Rs. 1,16,80,000 and the Profit after Tax has been understated by Rs. 1,16,80,000 in the “Statement of Profit and Loss. Had the company provided the tax expense as per the said AS-22. The Reserves of the Company would have been higher by Rs. 1,16,80,000 and Short Term Provisions would have been lower by ' 1,16,80,000.

4. Scheme of Amalgamation

The Scheme of Amalgamation between Monarch Research and Brokerage Private Limited (‘MRBPL') and Networth Stock Broking Limited was approved by the Hon'ble High Court of Gujarat on May 03, 2013 and the scheme of Amalgamation between Monarch Projects and Finmarkets Limited (MPFL) and Networth Stock Broking Limited was approved by the Hon'ble High Court Mumbai on August 07, 2014.

Pursuant to the scheme of Amalgamation between Monarch Research and Brokerage Private Limited (‘MRBPL') and Monarch Projects and Finmarkets Limited (MPFL) with Networth Stock Broking Limited the assets and liabilities of the erstwhile transferor companies was transferred to and vested in the company with effect from the 1st April, 2010 being the appointed date, the scheme has been given effect to these accounts in current financial year.

As per the Scheme of Amalgamation the Company was required to issue 1,90,80,000 equity shares of face value of Rs. 10/- per share aggregating Rs.19,08,00,000/- to the shareholders of the erstwhile Tranferor Companies MRBPL and MPFL. The Company has allotted 1,90,80,000 equity shares aggregating to Rs. 19,08,00,000/- to the shareholders of the erstwhile MRBPL and MPFL on October 27, 2014. Hence, as on the date of Balance Sheet, the same has been shown as Share Capital to be issued pursuant to the Scheme of Amalagamation of previous year ending.

5. ACCOUNTING TREATMENT ON AMALGAMATION

The accounting for Amalgamation has been done in accordance to the approved Scheme of Amalgamation clause no 14 - "Accounting

Treatment". Accordingly, the Company has accounted for the Scheme in its book of Accounts as under:

1. The reserves in the books of account of the Tranferor Companies have been credited by the Transferee Company to its reserves in the same form in which they appear in the books of the Transferor Companies.

2. The amount lying to the balance of "Profit and Loss Account" in the books of account of the Transferor Companies has been adjusted by the Transferee Company to its Profit and Loss Account.

3. The Excess amount of Rs. 3,31,91,490/- resulting on account of amalgamation has been transferred to "Amalgamation Reserve Account". The said account has not been considered as a free reserve as provided u/s 2(29A) of the Companies Act, 1956 as directed by the Honourable Hight Court, Mumbai.

5. The difference between the book value of net assets taken over and the value of shares issued after accounting for the cancellation if any have been adjusted to the Securities Premium Account.

6. The application and reduction of the Share Premium Account has been effected as an integral part of the Scheme without having to follow the process under the provisions of Section 78 and Section 100, 102 and 103 of the Act. Such application/ reduction of the Share Premium account does not involve either diminution of liability in respect of unpaid share capital or payment to any share- holder of any paid up share capital. The order of the Court sanctioning the Scheme under Section 394 of the Act is deemed to be an order under Section 102 of the Act confirming the reduction and the compliance by the Transferee Company of the provisions of Section 391-394 of the Act shall be deemed to be the sufficient compliance of the provisions of Section 100 to 103 of the Companies Act, 1956, Rule 85 of the Companies (Court) Rules, 1959, and other applicable provisions, if any, relating to the reduction of share capital.

6. The Company provides for the use by its subsidiaries certain facilities like use of premises infrastructure and other facilities / services and the same are termed as ‘Shared Services'. The cost of such Shared Services are recovered from subsidiaries either on actual basis or on reasonable management estimates which are constantly refined in the light of additional knowledge gained relevant to such estimation.



7. Contingent Liability & Commitments (to the extent not provided for)

The management of the Company does not anticipate any contingent liability having material effect on the position stated in the Balance

Sheet at the year end except as stated below:

a. The Income tax demand outstanding upto the assessment years 2011-12 is Rs. 63.70 Lacs (previous year Rs. 63.70 Lacs). Based on the information available, the company expects that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

b. There are certain claims aggregating to Rs. 318 lacs (previous year Rs. 318 lacs) against the company for which the company has taken suitable legal recourse. Hence the same has not been recognized as a debt and no provision has been made thereof.

c. The company has given guarantee of Rs. 5 crores (previous year 5 crores) for loan taken by its Subsidiary Company Ravisha Financial Services Private Limited from financial institutions.

Contingent Liabilities of erstwhile Transferor companies:

MRBPL:

a. Bank Gurantee : NIL

b. The Commissioner of Service tax, Ahmedabad has issued show cause for claiming wrong exemption/exclusion of NSE/BSE transac- tion charges,SEBI fees etc. The total demand for the said show cause notice is Rs. 6,76,405/- No liability has been provided as the liabilities is contingent in nature.

c. The Assistant Commissioner of Income Tax,Ahmedabad has issued order dated 13/03/2013,disallowed Bad Debts of Rs. 3,80,037/- for A. Y 2009-10. The total demand for the said order u/s 143(3) is Rs. 1,37,444/- and the company has filed appealed against the said order. no liabilities has been provided as the liabilities is contingent in nature

d. The Assistant Commissioner of Income Tax,Ahmedabad has issued order dated 21/12/2011,disallowed Bad Debts of Rs. 11,27,093/- for A. Y. 2010-11. The total demand for the said order u/s 143(3) is Rs. 45,500/-And the assessee has filed appealed against the said order. no liabilities has been provided as the liabilities is contingent in nature.

NSBL (MergedEntities) (Figures in Rs.

Particulars As at 31St March, 2015

Service Tax matters pending with various authorities 5,797,691

Income Tax matters under appeal 3,048,207

Inter Corporate Guarantee 31,165,643

Total 40,011,541

8. Related Party Disclosure of NSBL

(a) List of Related Parties and Relationship

NAME OF THE RELATED PARTY NATURE OF RELATIONSHIP

Networth Commodities & Investments Ltd. Subsidiary Company

Monarch Insurance Broking Private Limited Subsidiary Company

Networth Wealth Solutions Ltd. 100% Subsidiary Company

Ravisha Financial Services Private Ltd. 100% Subsidiary Company

Networth Insurance Broking Private Ltd. 100% Subsidiary Company

Networth Financial Services Ltd. Associate Concern

Key Management Personnel

Manish Ajmera Chief Executive Officer/ Director (Resigned on 23rd June, 2014)

Randhir Sisodiya "Executive Director (Appointment on 23rd June 2014, “upto 1st December, 2014)"

Vaibhav Shah Managing Director (Appointment From 1st December, 2014)

Others

Mr. S. P. Jain Chairman & Dominant Promoter Group

Mrs. Kanta Jain Dominant Promoter Group

Mr. Suresh Bafna Dominant Promoter Group

Mrs. Manju Bafna Dominant Promoter Group

"S.P. Jain - HUF Enterprises over which Director/ Key Managerial

“Sun Capital Advisory Services Personnel/DPG are able to Private Limited” exercise

Premjayanti Properties- significant influence Partnership Firm

(Mr. Vaibhav Shah & Mr. Himanshu Shah- being partners

Networth Softech Limited (Associate Enterprises over which Director/ Company) Key Managerial Personnel/DPG are able to exercise significant influence

9. The company has taken suitable legal action for recovering deposits of ' 40 lacs (previous year Rs. 40 lacs) for premises at Bangalore. The management expects favorable order for the same, hence no provisions have been made thereof.

10. The company has taken suitable legal action for recovering debts of Rs. 239 lacs (previous year Rs. 239 lacs) for fraudulent transaction done by client in the year 2008-09. SEBI has passed the interim order withholding the payout which is kept with Bombay Stock Exchange till completion of investigation. The management expects favorable order for the same, hence no provisions have been made thereof.

11. In the opinion of the Directors of the Company, the Current Assets and loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which items are stated in the Balance Sheet.

12. There are no Capital commitments which is outstanding as on Balance Sheet date (previous year Nil).

13. Events Occurring After the Balance Sheet Date

To the best of knowledge of the management, apart from the Accounting for Scheme of Amalgamation there are no events occurring after the Balance Sheet date that provide additional information materially affecting the determination of the amounts relating to the conditions existing at the Balance Sheet Date that requires adjustment to the Assets or Liabilities of the Company.

14 Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current year's classification/ disclosure.

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Mar 31, 2014

1. Share Capital

a. Terms/Rights attached to equity shares

The company has only one class of equity shares having par value of Rs. 10 per share. Each holder of equity shares is entitled to one vote per share. The company declares and pays dividend in Indian Rupees.

During the year ended March 31, 2014 the company had not declared any dividend (Previous Year Nil).

b. During the year no share was reserved for issue under options and contracts/commitments for the sale of shares/disinvestment.

c. The company had not issued any bonus share for consideration other than cash and no share had bought back during the period of five years immediately preceding the reporting date.

2. Share Capital to be issued pursuant to the Scheme of Amalagamation

As per the Scheme of Amalgamation the Company was required to issue 1,90,80,000 equity shares of face value of Rs. 10/- per share aggregating Rs. 19,08,00,000/- to the shareholders of the erstwhile Tranferor Companies MRBPL and MPFL. The Company has allotted 1,90,80,000 equity shares aggregating to Rs. 19,08,00,000/- to the shareholders of the erstwhile MRBPL and MPFL on October 27, 2014. Hence, as on the date of Balance Sheet, the same has been shown as Share Capital to be issued pursuant to the Scheme of Amalagamation.

3. Reserves & Surplus

Refer Note 33 for Accounting Treatment in the books pursuant to the Approved Scheme of Amalgamation.

4. Long-Term Borrowings

(a) Loan from NBFC of Rs. 4,80,867/- of the erstwhile Monarch Projects and Finmarkets Limited has been taken from Kotak Mahindra Prime Ltd. The loan has been secured by way of Hypothecation of Vehicles.

Aforesaid loan is classified as long Term Borrowings to the Extent to which it is not of current nature i.e. which are due to be settled after 12 months and current maturities of long term borrowings is classified as other current liabilities.

5. Short-Term Borrowings

* Loan from NBFC of Rs. 9,15,44,969/- of the erstwhile Monarch Research and Brokerage Private Limited has been taken from Aditya Birla Finance Limited .The loan has been secured by Equity shares.

6. Trade Payables

a. In absence of information regarding vendors covered under Micro, Small & Medium Enterprises Development Act, 2006. disclosure relating to amounts unpaid as at the year end together with interest paid/payable under this Act has not been given.

b. Sundry creditors - others includes an amount of Rs. 5,66,164/- payable to subsidiary.

7. Non-current Investments

Note:

a. During the year the Company has not invested in any subsidiaries.

b. During the year Networth Softech Ltd. Increased their equity share capital by inviting capital from investors not part of the group. Subsequent to increase in capital the shareholding of our company was reduced to less than 5 percent, Hence, Networth Softech Ltd. ceased to be subsidiary of our company.

8. Deferred Tax Assets (Net)

* The Company has recognized deferred tax assets as at March 31, 2014 of Rs. 4,75,21,028/- taking into consideration individual DTA/DTL calculations of the Transferor Companies. Since the management is reasonably certain of its profitable operations in future. As per Accounting Standard 22 ''Accounting for Taxes on Income'' the timing differences mainly relates to items as shown herein above that results in a net deferred tax asset.

9. Inventories

* Stock in trade represents shares held as on balance sheet date at valued at cost being shares held by virtue of acting as a merchant banker and market maker for the acquired equity shares. Balance in vandha & trading error A/c. are basically shares held as a result of Trading Error or Vandha Accounts of clients. In absence of information, disclosure relating quantity has not been given.

10. Trade Receivables

# In erstwhile MPFL - Outstanding more than six months figure cannot be determined exactly as client has been continuously trading and maintaining running account therefore,the same has not been separately presented.

None of the director either severally or jointly are included in Trade Receivables stated above.

11. Employee Benefit expense

Note : The above calculation of Employee Benefits has been done by an independent Actuary and it does not include the calculations of the Transferor Companies, if any.

12. Administrative Selling and Distribution Expenses

** This represents recovery of expenses in agreed proportion towards utilization of common facilities including staff cost from subsidiaries and associate concerns.

13. Earning Per Share

Due to impact of the scheme of merger between Company & amalgamating Companies, there is share capital of 1,90,80,000 number of equity shares which are to be allotted to amalgamating Companies. If these shares would have been allotted, it results in total equity capital of 3,03,11,600 no. of Equity shares and resultant fully diluted EPS would have been Rs. -0.22.

14. Additional Information pursuant to the provisions of paragraphs 4, 4B, 4C and 4D of part II of Schedule VI to the Companies Act, 1956, to the extent applicable.

Computation of net profit u/s 349 of the Companies Act, 1956 is not furnished as no commission is payable/paid to the Directors. The reimbursement or payment of expenses as per the contractual appointment, are not in the nature of personal expenses, as the same are accepted/incurred under contractual obligation as per the business practices. Also the expenditure incurred in the normal course of business, in accordance with the generally accepted business practices, on employees and directors, is not considered as expenditure of personal nature. There for the same has not been considered for the above purpose.

15. Pursuant to the scheme of Amalgamation in the nature of merger between the Company and Monarch Research and Brokerage Private Limited (''MRBPL'') & Monarch Project & Finmarkets Limited on a going concern basis consisting of all the assets and liabilities pertaining to the transferor companies being approved by shareholders of both the companies and subsequently approved by the Hon''ble High Courts, the scheme has been given effect to, in this financial statements and accordingly:

(i) The Financial Statements for the year ended 31st March, 2014 which were earlier approved by the Board of the Directors on 5th June, 2014 and audited by the Statutory Auditors of the company have been revised.

(ii) All assets and liabilities pertaining to the transferor companies stand transferred to and vested in the company as a going concern at carrying values as disclosed in the financial statements of transferor companies.

16. Scheme of Amalgamation

The scheme of Amalgamation between Monarch Research and Brokerage Private Limited (''MRBPL'') and Networth Stock Broking Limited was approved by the Hon''ble High Court of Gujarat on May 03, 2013 and the scheme of Amalgamation between Monarch Projects and Finmarkets Limited (MPFL) and Networth Stock Broking Limited was approved by the Hon''ble High Court Mumbai on August 07, 2014.

Pursuant to the scheme of Amalgamation between Monarch Research and Brokerage Private Limited (''MRBPL'') and Monarch Projects and Finmarkets Limited (MPFL) with Networth Stock Broking Limited the assets and liabilities of the erstwhile transferor companies was transferred to and vested in the company with effect from the 1st April, 2010 being the appointed date, the scheme has been given effect to these accounts in current financial year.

As per the Scheme of Amalgamation the Company was required to issue 1,90,80,000 equity shares of face value of Rs. 10/- per share aggregating Rs. 19,08,00,000/- to the shareholders of the erstwhile Transfer or Companies MRBPL and MPFL. The Company has allotted 1,90,80,000 equity shares aggregating to Rs. 19,08,00,000/- to the shareholders of the erstwhile MRBPL and MPFL on October 27, 2014. Hence, as on the date of Balance Sheet, the same has been shown as Share Capital to be issued pursuant to the Scheme of Amalagamation.

17. Disclosures in accordance with Accounting Standard-14

(a) Name and Nature of Business of Amalgamation Companies:

Name of the Company Nature of Business

Networth Stock Broking Limited Stock Broking, Depository and Merchant Banking Services

Monarch Research and Brokerage Stock Broking and Portfolio Private Limited (MRBPL) Management Services

Monarch Projects and Finmarkets Stock Broking and Depository Limited (MPFL) Participant

(b) Method of accounting used to reflect the amalgamation The Pooling of Interests Method

(c) Particulars of the scheme sanctioned under a statute

(d) The scheme has envisaged an exchange ratio as under:

* MPFL-201 (Two Hundred and One) Equity Shares of Rs. 10/- each of NSBL for every 100 (One Hundred) Equity Share of Rs. 10/- each held in MPFL.

* MRBPL-100 (One Hundred) Equity Shares of Rs. 10/- each of NSBL for every 100 (One Hundred) Equity Share of Rs. 10/- each held in MRBPL.

18. ACCOUNTING TREATMENT ON AMALGAMATION

The accounting for Amalgamation has been done in accordance to the approved Scheme of Amalgamation clause no 14 - "Accounting Treatment". Accordingly, the Company has accounted for the Scheme in its book of Accounts as under:

1. The reserves in the books of account of the Tranferor Companies have been credited by the Transferee Company to its reserves in the same form in which they appear in the books of the Transferor Companies.

2. The amount lying to the balance of "Profit and Loss Account" in the books of account of the Transferor Companies has been adjusted by the Transferee Company to its Profit and Loss Account.

3. The Excess amount of Rs. 3,31,91,490/- resulting on account of amalgamation has been transferred to "Amalgamation Reserve Account". The said account has not been considered as a free reserve as provided u/s 2(29A) of the Companies Act, 1956 as directed by the Honourable Hight Court, Mumbai.

4. As per the Scheme of Amalgamation the Company was required to issue 1,90,80,000 equity shares of face value of Rs. 10/- per share aggregating Rs. 19,08,00,000/- to the shareholders of the erstwhile Tranferor Companies MRBPL and MPFL. The Company has allotted 1,90,80,000 equity shares aggregating to Rs. 19,08,00,000/- to the shareholders of the erstwhile MRBPL and MPFL on October 27, 2014. Hence, as on the date of Balance Sheet, the same has been shown as Share Capital to be issued pursuant to the Scheme of Amalagamation.

5. The difference between the book value of net assets taken over and the value of shares issued after accounting for the cancella- tion if any have been adjusted to the Securities Premium Account.

6. The application and reduction of the Share Premium Account has been effected as an integral part of the Scheme without having to follow the process under the provisions of Section 78 and Section 100, 102 and 103 of the Act. Such application/reduction of the Share Premium account does not involve either diminution of liability in respect of unpaid share capital or payment to any shareholder of any paid up share capital. The order of the Court sanctioning the Scheme under Section 394 of the Act is deemed to be an order under Section 102 of the Act confirming the reduction and the compliance by the Transferee Company of the provisions of Section 391-394 of the Act shall be deemed to be the sufficient compliance of the provisions of Section 100 to 103 of the Companies Act, 1956, rule 85 of the Companies (Court) Rules, 1959, and other applicable provisions, if any, relating to the reduction of share capital.

19. The effects on the financial statements of the Amalgamated Company for any difference in accounting policies between the Transferee Company (NSBL) and the Transferor Companies (MRBPL and MPFL)have not been quantified.

20. The Company provides for the use by its subsidiaries certain facilities like use of premises infrastructure and other facilities/services and the same are termed as ''Shared Services''. The cost of such Shared Services are recovered from subsidiaries either on actual basis or on reasonable management estimates which are constantly refined in the light of additional knowledge gained relevant to such estimation.

21. Contingent Liability & Commitments (to the extent not provided for)

The management of the Company does not anticipate any contingent liability having material effect on the position stated in the

Balance Sheet at the year end except as stated below:

a. The Income tax demand outstanding upto the assessment years 2011-12 is Rs. 63.70 Lacs (previous year Rs. 83 Lacs). Based on the information available, the company expects that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

b. There are certain claims aggregating to Rs. 318 lacs (previous year Rs. 489 lacs) against the company for which the company has taken suitable legal recourse. Hence the same has not been recognized as a debt and no provision has been made thereof.

c. The company has given guarantee of Rs. 5 crores (previous year Nil) for loan taken by its Subsidiary Company Ravisha Financial Services Private Limited from financial institutions.

Contingent Liabilities of erstwhile Transferor companies:

MRBPL:

a. Bank Guarantee Rs. 300 Lacs.

b. The Commissioner of Service tax, Ahmedabad has issued show cause for claiming wrong exemption/exclusion of NSE/BSE transaction charges,SEBI fees etc. The total demand for the said show cause notice is Rs. 6,76,405/- No liability has been provided as the liabilities is contingent in nature.

c. The Assistant Commissioner of Income Tax,Ahmedabad has issued order dated 13/03/2013, disallowed Bad Debts of Rs. 3,80,037/- for A.Y. 2009-10. The total demand for the said order u/s 143(3) is Rs. 1,37,444/- and the company has filed appealed against the said order. No liabilities has been provided as the liabilities is contingent in nature.

d. The Assistant Commissioner of Income Tax,Ahmedabad has issued order dated 21/12/2011, disallowed Bad Debts of Rs. 11,27,093/- for A.Y. 2010-11. The total demand for the said order u/s 143(3) is Rs. 45,500/-And the assessee has filed appealed against the said order. no liabilities has been provided as the liabilities is contingent in nature.

22. Related Party Disclosure of NSBL

(a) List of Related Parties and Relationship

NAME OF THE RELATED PARTY NATURE OF RELATIONSHIP

Networth Commodities & Investments Ltd. Subsidiary Company

Networth Wealth Solutions Ltd. 100% Subsidiary Company

Ravisha Financial Services Private Ltd. 100% Subsidiary Company

Networth Insurance Broking Private Ltd. 100% Subsidiary Company

Networth Financial Services Ltd. Associate Concern

Key Management Personnel

Manish Ajmera Chief Executive Officer/Director (Resigned on 23rd June, 2014)

Others

S. P. Jain Chairman & Dominant Promoter Group

Kanta Jain Dominant Promoter Group

S. P. Jain - HUF Enterprises over which Director/Key Mana

Sun Capital Advisory Services General Personnel/DPG are Private Limited able to exercise significant influence

23. The company has taken suitable legal action for recovering deposits of Rs. 40 lacs (previous year Rs. 40 lacs) for premises at Bangalore. The management expects favorable order for the same, hence no provisions have been made thereof.

24. The company has taken suitable legal action for recovering debts of Rs. 239 lacs (previous year Rs. 239 lacs) for fraudulent transaction done by client in the year 2008-09. SEBI has passed the interim order withholding the payout which is kept with Bombay Stock Exchange till completion of investigation. The management expects favorable order for the same, hence no provisions have been made thereof.

25. In the opinion of the Directors of the Company, the Current Assets and loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which items are stated in the Balance Sheet.

26. There are no Capital commitments which is outstanding as on Balance Sheet date (previous year Nil).

27. Events Occurring After the Balance Sheet Date

To the best of knowledge of the management, apart from the Accounting for Scheme of Amalgamation there are no events occurring after the Balance Sheet date that provide additional information materially affecting the determination of the amounts relating to the conditions existing at the Balance Sheet Date that requires adjustment to the Assets or Liabilities of the Company.

28. Previous year''s figures have been regrouped/reclassified wherever necessary to correspond with the current year''s classification/disclosure.

Previous Years figures are pre Amalagamation figures of Networth Stock Broking Limited and current years figures are post Amalagamation figures of Networth Stock Broking Limited, hence previous years figures are not comparable with current year figures.

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Mar 31, 2013

1. CORPORATE INFORMATION

Networth Stock Broking Limited (''the Company'') has emerged as a leading provider of financial sevices and information provider primarily to Institutional and Retail clients in India for more than a decade.The Company is a member of the National Stock Exchange of India Ltd. (NSE) and BSE Limited (BSE) in the Capital Market and Dervatives (Futures & Options) segment. The Company has also acquired membership of the currency derivatives segment with NSE, BSE, USE & MCX-SX. It is Depositary Participant with Central Depository Services (India) Limited (CDSL) and National Securities Depository Limited (NSDL). The Company also provides Merchant Banking facilities and Market Maker Services.

Note 2 Scheme of Amalgamation

The Board of Directors of the Company at its meeting held on 9th April, 2011 approved the Scheme of Amalgamation under Section 391 to 394 of the Companies Act 1956 of Monarch Research and Brokerage Private Limited (MRBPL) and Monarch Project and Finmarkets Limited (MPFL) with the Company with effect from appointed date i.e 1st April 2010.

The said Scheme is further approved by the Equity Shareholders of the Company at the Court Conveyed Meeting held on 9th April 2012 as per the direction of Hon''ble high Court of the Judicature at Bombay vide its order dated 2nd March 2012.

NSBL and MPFL has filed petition on 30th April, 2012 with the Hon''ble High Court of Bombay at Mumbai and MRBPL on 27th June, 2012 with the Hon''ble High Court cff Gujarat at Ahmedabad and the same have been admitted by the respective High Courts.

The Company has also received no objection /Prior Approval from BSE, NSE, NSDL, CDSL, USE and SEBI- Portfolio Management Services (PMS) for the said scheme of amalgamation. The approval from SEBI, MCX-SX and SEBI- Merchant Banker''s divisions are awaited as on 17th June, 2013.

Note 3 The Company provides for the use by its subsidiaries certain facilities like use of premises infrastructure and other facilities / services and the same are termed as ''Shared Services''. The cost of such Shared Services are recovered from subsidiaries either on actual basis or on reasonable management estimates which are constantly refined in the light of additional knowledge gained relevant to such estimation.

Note 4 Contingent Liability & Commitments (to the extent not provided for)

The Management of the Company does not anticipate any contingent liability having material effect on the position stated in the Balance Sheet at the year end except as stated below:

a. Income tax assessment of the Company has been completed upto assessment year 2008-09. The disputed demand outstanding upto the said assessment year is ? 83 Lacs (previous year ? 83 Lacs). Based on the decisions of the Appellate authorities and the interpretation of the other relevant provisions, the Company expects that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

b. There are certain claims aggregating to ? 489 Lacs (previous year ? 489 Lacs) against the Company for which the Company has taken suitable legal recourse. Hence the same has not been recognized as a debt and no provision has been made thereof.

c. The Company has given guarantee of ? 5 Crores (previous year ? 5 Crores) for loan taken by its Subsidiary Company Ravisha Financial Services Private Limited from financial institutions.

Note 5 The Company has taken suitable legal action for recovering deposits of? 40 Lacs (previous year? 40 Lacs) for premises at Bangalore. The Management expects favorable order for the same, hence no provisions have been made thereof. Note 33 The Company has taken suitable legal action for recovering debts of ? 239 Lacs (previous year ? 239 Lacs) for fraudulent transaction done by client in the year 2008-09. SEBI has passed the interim order withholding the payout which is kept with Bombay Stock Exchange till completion of investigation.

The Management expects favorable order for the same, hence no provisions have been made thereof. Note 34 In the opinion of the Directors of the Company, the Current Assets and loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which items are stated in the Balance Sheet. Note 35 There are no Capital commitments which is outstanding as on Balance Sheet date (previous year Nil). Note 36 Events Occurring After the Balance Sheet Date

To the best of knowledge of the management, there are no events occurring after the Balance Sheet date that provide additional information materially affecting the determination of the amounts relating to the conditions existing at the Balance Sheet Date that requires adjustment to the Assets or Liabilities of the Company.

Note 6 Previous year''s figures have been regrouped/ reclassified wherever necessary to correspond with the current year''s classification/ disclosure.

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Mar 31, 2012

1. CORPORATE INFORMATION

Networth Stock Broking Limited ('the Company') has emerged as a leading provider of financial services and information provider primarily to Instititional and Retail clients in India for more than a decade.The Company is a member of the National Stock Exchange of India Ltd. (NSE) and BSE Ltd. (BSE) in the Capital Market and Derivatives (Futures & Options) segment. It is Depository Participants with Central Depository Services India Limited (CDSL) and National Securities Depository (India) Limited (NSDL). The Company also provides Merchant Banking services.

Note: 2 Scheme of Amalgamation

The Board of Directors of the Company at its meeting held on 9th April, 2011 approved the scheme of Amalgamation under Section 391 to 394 of the Companies Act 1956 of Monarch Research and Brokerage Private Limited (MRBPL) and Monarch Project and Finmarkets Limited (MPFL) with the Company with effect from appointed date i.e 1st April, 2010.

The Said scheme is further approved by the Equity shareholders of the Company at the court conveyed meeting held on 9th April, 2012 as per the direction of Hon'ble high Court of the Judicature at Bombay vide its order dated 2nd March, 2012.

NSBL and MPFL has filed petition on 30th April, 2012 with the Hon'ble High Court of Gujarat at Ahmedabad and the same has been admitted by the respective High Courts.

The Company has also received no objection /Prior Approval from BSE, NSE, NSDL, CDSL, USE and SEBI- Portfolio Management Services (PMS) except from SEBI, MCX-SX and SEBI- Merchant Banker's Section for the said Scheme of Amalgamation as on dated on 21s' September, 2012.

Note: 3 The Company provides for the use by its subsidiaries certain facilities like use of premises infrastructure and other facilities / services and the same are termed as 'Shared Services'. The cost of such Shared Services are recovered from subsidiaries either on actual basis or on reasonable management estimates which are constantly refined in the light of additional knowledge gained relevant to such estimation.

Note: 4 Contingent Liability & Commitments (to the extent not provided for)

The management of the Company does not anticipate any contingent liability having material effect on the position stated in the Balance Sheet at the year end except as stated below:

a. Income tax assessment of the Company has been completed upto assessment year 2008-09. The disputed demand outstanding upto the said assessment year is Rs. 83 Lacs (previous year Rs. 1101 Lacs). Based on the decisions of the Appellate authorities and the interpretation of the other relevant provisions, the Company expects that the demand is likely to be either deleted or substantially reduced and accordingly no provision has been made.

b. There are certain claims aggregating to Rs. 489 lacs (previous year Rs. 125 lacs) against the Company for which the Company has taken suitable legal recourse. Hence the same has not been recognized as a debt and no provision has been made thereof.

c. The Company has given guarantee of Rs. 5 crores (previous year Nil) for loan taken by its Subsidiary Company Ravisha Financial Services Private Limited from financial institutions.

Note: Where, CY= Current year's figures & PY= Previous year's figures

Note: 5 The Company has taken suitable legal action for recovering deposits of Rs. 40 lacs (previous year Rs. 340 lacs) for premises at Bangalore. The management expects favorable order for the same, hence no provisions have been made thereof.

Note: 6 The Company has taken suitable legal action for recovering debts of Rs. 239 lacs (previous year Rs. 239 lacs) for fraudulent transaction done by client in the year 2008-09. SEBI has passed the interim order withholding the payout which is kept with BSE till completion of investigation. The management expects favorable order for the same, hence no provisions have been made thereof.

Note: 7 In the opinion of the Directors of the Company, the Current Assets and loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which items are stated in the Balance Sheet.

Note: 8 There are no Capital commitments which is outstanding as on Balance Sheet date (previous year Nil).

Note: 9 Events Occurring After the Balance Sheet Date

To the best of knowledge of the management, there are no events occurring after the Balance Sheet date that provide additional information materially affecting the determination of the amounts relating to the conditions existing at the Balance Sheet Date that requires adjustment to the Assets or Liabilities of the Company.

Note: 10 The Revised Schedule VI has become effective from 1st April, 2011 for the preparation of financial statements. This has significantly impacted the disclosure and presentation made in the financial statements. Previous year's figures have been regrouped/ reclassified wherever necessary to correspond with the current year's classification/disclosure.

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Mar 31, 2010

1. In the previous year, a client of the Company along with set of clients transacted fraudulently in particular scrip with the company and other brokers for which SEBI has passedtheinterimorderwithholdingthe payout to the selling client till completion of investigation. Consideringthis fact, company has not provided for amount of Rs. 239 Lacs recoverable from this client.

2. The Company has taken suitable legal action for recovering deposits of Rs. 40 lacs for premises at Bangalore and expects favorable order for the same, hence no provisions have been made thereof.

3. Segment Reporting:-

During the year under consideration, the company has two operative segments namely, Capital Market (CM) Segment and Depository Participant (DP) segment. As the DP, does not fall within the parameters of "reportable segment" enunciated in Accounting Standard 17 "Segmental Reporting", the company has only one reportable segment i.e. CM. In view of above and considering Accounting Standard Interpretation 20"DisclosureofSegmentlnformation",thecompany has not furnishedtheSegmental Reporting.

4. Related Party Disclosures:

a) List of Related Partiesand Relationship:

Name Of The Related Party Nature Of Relationship

Networth Commodities & Investments Ltd. Subsidiary Company

Networth SoftTech Ltd. 100% Subsidiary Company

Networth Wealth Solutions Ltd. 100% Subsidiary Company

Ravisha Financial Services Private Ltd. 100% Subsidiary Company

Networth Insurance Broking Private Ltd. 100% Subsidiary Company

Networth Financial Services Ltd.Associate Company_

Key Management Personnel

Girish Dev Chief Executive Officer/Director

ManishAjmera Chief Financial Office

Others

S.P.Jain Dominant Promoter Group and

KantaJain

S.P. Jain HUF Enterprises over which Director/ Key Managerial Personnel/DPG Sun Capital Advisory Services Private Limited are able to exercise significant influence Sanjay & Vijay Associates

5. Events Occurring After the Balance Sheet Date:

To the best of knowledge of the management, there are no events occurring after the Balance Sheet date that provide additional information materially affecting the determination of the amounts relatingtothe conditions existing at the Balance Sheet Datethat requires adjustment to the Assets or Liabilities of the Company.

6. Capital Commitments:

There are outstanding Capital commitments amounting to Rs.l2,999,624 (previous year Rs.7,640,480) on account of development of software.

7. In the opinion of the Directors of the Company, the Current Assets and loans and advances have a value on realization in the ordinary course of business at least equal to the amount at which items are stated in the Balance Sheet.

8. Contingent Liability

The management of the Company does not anticipate any contingent liability having material effect on the position stated in the Balance Sheet at the year end except as stated below:

a. Income tax assessment of the company has been completed upto assessment year 2007-08. The disputed demand outstanding upto the said assessment year is Rs. 902 Lacs. Based on the decisions of the Appellate authorities and the interpretation of the other relevant provisions, the company expects that the demand is likely to bee it her deleted or substantially reduced and accordingly no provision hasbeen made.

b. There is a claim of Rs. 125 lacs against the company for which the company has taken suitable legal recourse. Hence the same has not been recognized as a debt and no provision has been made thereof.

9. Details about the Micro, Small and Medium Enterprises

In absence of information regarding vendors covered under the Micro, Small and Medium Enterprises Development Act, 2006, disclosure relating toamounts unpaid as attheyear end together with interest paid/ payable underthis Act has not been given.

10. Previousyearsfigure have been recastand rearranged whereverfound necessary.